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/biz/ - Business & Finance

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17620790 No.17620790 [Reply] [Original]

Can you please explain to a eurofag what does it mean that the FED cut the interest rate by 0.5% and what repercussion does it have locally and globally?

>> No.17620859

no

>> No.17620888

>>17620790
It means Jews are the enemy and need to be forced to extinction.

>> No.17620895
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17620895

>>17620859
I thought we were frens.

>> No.17620907

>>17620888
based and red pilled

>> No.17620918

Well for one it's an stimulus policy. Lowering the interest rates makes credit cheaper which enables more consumption (theoretically, it should generate investment but that hasn't been the case lately). On the other hand, a lower interest rate makes american bonds less attractive, which generates an deprecciation of the US dollar, that makes american exports more competitive and it puts pressure on other economies to also deprecciate their currency and offset the disadvantage

>> No.17620926

>>17620918
Depreciation*

>> No.17620967

>>17620918
>that makes american exports more competitive and it puts pressure on other economies to also deprecciate their currency and offset the disadvantage
But that will be the case in the middle of a global pandemic?. I mean based on the infection rates of coronavirus this will last at least a full year

>> No.17620978

DOW 30,000

>> No.17621026

>>17620967
And why not? What that does have to do with this?
A lower rate is still a low return on investment. Investors who want to have a profit will sell US dollars and buy another currencies to acquire bonds issued by foreign central banks. That will depreciate the dollar. Foreign central banks will have a pressure to also cut rates and depreciate their currencies in order to remain competitive. It's already happening
https://www.google.com/amp/s/www.cnbc.com/amp/2020/03/06/forex-markets-us-dollar-in-focus.html

>> No.17621039

>>17620967
Anyway, they're cuting the rates precisely because of coronavirus. They want to stimulate the US economy. The problem is, they're too close to being in a liquidity tramp where cuting rates won't work anymore

>> No.17621052

>>17621039
Trap* typing in english in a smartphone with another default language is so annoying

>> No.17621082

>>17621026
>>17621039
>>17620967
To add to this, they cut the rates to practically 0 in 2008 and we all know how that went. I wouldn't count on this doing anything impressive. Plan accordingly

>> No.17621558

they will implement negative interest rates

>> No.17621566

>FED

>> No.17621596

>>17620790
it means the fed is about to be abolished.

>> No.17622097

We're fucked

https://www.peakprosperity.com/next-comes-the-turbulent-twenties/

https://wtfhappenedin1971.com/

>> No.17622165

>>17620790
Bullish for FRM + poorfags in general.