The US Federal Reserve ended its interest rate last week and passed a rate cut of 0.25 per cent with 7 votes to 3 votes, the second time since this year
The US economy is underperforming and heavily indebted, and interest rate cuts are expected to follow. Federal Reserve Chairman Powell will cut interest rates again and will only reduce to zero interest rates without negative interest rates.
It should be noted that the federal funds rate has dropped from the interest rate reduction to the current 1.75 to 2%
and the reduction to zero interest rate has been no small reduction, which is greatly beneficial to the investment market. If there is a negative interest rate, the reduction is even worse.
Now that the EU and Japan are already negative interest rates, the EU has restarted quantitative easing to stimulate its own economy
To improve competitiveness in the United States, interest rate cuts are the main trick. Powell said that if the economy declines, if necessary, action will be taken to further cut interest rates, and the time to repurchase assets may be earlier than expected.
After the financial tsunami, the United States has carried out a large amount of money, and the property prices of the property market and other stock markets have soared. The same situation is expected to repeat itself.