The dollar soared after the Fed cut interest rates

Boots on the ground! The Fed cut interest rates by 25 basis points

The US Federal Reserve Board announced on the 18th local time that it will cut the target range of the federal funds rate by 25 basis points to 4.25% to 4.50%. This is also the third consecutive rate cut by the Fed, following a 50 basis point cut in September and a 25 basis point cut in November.

Although the rate cut as scheduled, but the economic outlook report raised the future policy interest rate expectations and inflation expectations, is expected to cut only twice next year a total of 50 basis points, lower than previously expected. Powell put the eagle in his press conference, saying the Fed was cautious about cutting rates and that officials needed to see more progress on inflation before cutting rates further. Powell said that the policy of the new U.S. administration has not yet been formally published, but the Fed has done a considerable amount of preparatory work, and eventually when it sees specific policies, it will be able to conduct a more careful and thoughtful assessment and formulate an appropriate policy response.

How are companies coping with the impact of interest rate cuts

Dollar rate cut first stimulate the European and American people consumption.

For foreign trade enterprises, orders may increase, to prepare for the "good start" next year; Secondly, interest rate cuts will promote local enterprises in the United States to expand investment capacity, increase scientific and technological investment, therefore, the possible domestic capital outflow and industrial transfer, we should pay attention to.

Chinese textile and garment enterprises should not only be good at grasping the phased dividend of the US dollar interest rate cut, but also consolidate their own foundation, build a more stable industrial chain, and better cope with changes. Interest rate cuts also affect the rise and fall of raw material prices. The depreciation of the dollar brought about by the news of the interest rate cut has made the price of raw materials rise, and has an impact on the production cost of enterprises. Qualified enterprises can purchase more raw materials, carefully receive orders, and lock profits on the price.

The opening of the US interest rate cut cycle is undoubtedly a major landmark event in the global economic and financial field in 2024, and its subsequent development path and impact will continue to ferments and gradually emerge in the next few months or even years. The global economic and financial market will enter a new stage of development full of variables and challenges driven by this policy wave. All parties must pay close attention to and respond prudently. In order to move forward steadily in the complex and changing global economic landscape.

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