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Fed rate cut is positive or negative for the dollar

by admin

A Fed rate cut is bad for the dollar.

The Federal Reserve interest rate cut indicates that the dollar tends to ease, at the same time, increase the printing money, promote the liquidity of the dollar, and the dollar supply is greater than the demand for dollars, the supply is greater than the demand, will lead to a downward, the Federal Reserve interest rate cut will be negative for the dollar.

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After the Fed cut interest rates, the cost of using the US dollar decreased, because the US dollar is internationally used and freely convertible, so more US dollars will be converted into convertible currencies or commodities without interest rate reduction, and everyone will sell US dollars, resulting in.

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A cut in interest rates reduces the purchasing power of the dollar, so it may cause prices to rise in the short term.

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