The purpose of raising interest rates includes reducing supply, curbing consumption, curbing inflation, encouraging savings, slowing market speculation and so on.
The interest rate hike of the Federal Reserve refers to the increase of the inter-bank lending rate in the United States, which aims to reduce the money supply, suppress consumption, suppress inflation, encourage deposits, slow down market speculation and so on.
Higher interest rates will reduce the supply of dollars, so there is less money in the market, and the dollar will appreciate.
If the Fed raises interest rates, the dollar will rise, which means that the rest of the world will also depreciate, and the depreciation here is the RMB/USD, for example, before the interest rate rise, the RMB/USD was 6:
1, after the interest rate increase, it may be 7:1, which means that we need to spend more money to buy American things, and money is related to all aspects, so the impact of the Fed’s interest rate increase is huge.
The Fed on Wednesday will signal a rate hike in March and start reducing its balance sheet later to help fight inflation.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.