The Federal Reserve is the federal reserve system of the United States and the central banking system of the United States. Its rights are obtained from Congress and supervised by Congress, but it does not accept congressional funding. "Technically speaking," its resolutions do not need the approval of the President of the United States. Now the United States is the largest economy in the world, and the dollar is the center of the international monetary system, so as long as the Fed sneezes, it can shake the global economic market several times.
Recently, the Federal Reserve announced that it would cut interest rates by 25 basis points and cut the target range of the federal funds interest rate to 1.75% to 2%. This is the second time that the Federal Reserve has announced a rate cut since August 1. The continuous interest rate cuts by the Federal Reserve eased the pressure of RMB interest rate increase in China, activated household consumption, stimulated the capital market, and greatly reduced the interest rate of national debt, narrowing the spread between the US dollar and RMB.
However, the dollar may depreciate against the dollar. Due to the depreciation of the dollar, international commodity prices will rise and precious metal prices will be relatively firm. If the Fed continues to cut interest rates above 75 basis points, the dollar will flow overseas again, which will also ease the debt pressure of developing countries. But if the dollar flows out too much, it will also push up international inflation. The impact on the United States itself is still good. First of all, it is conducive to the recovery of the real economy, and it also reduces the credit pressure of enterprises and individuals and promotes people's consumption.