Kinz Consultancy’s Post

Transcript

Why should you keep an eye on the Fed, the US central bank? And how do feds decisions affect you even if you don't live in the states? I'm Doctor Rawa Harati. Welcome to King's Global. The entire world is anticipating the feds next move today, not only Americans. When is the Fed going to cut the interest rate next? And how many cuts in 2024? What should you know? the Fed influences the US economy by setting interest rates like any other central bank. These actions directly. Affect the global demand for U.S. dollars. Let's assume the Fed raises the interest rates in the US. This will make investing in dollars become more attractive, more lucrative for investors. So naturally there will be more demand on the US dollars. It will become stronger. Now in this specific scenario, countries not wanting their local currency to become too cheap relative to the dollar will have to adjust their own interest rate accordingly and. When your central bank makes such adjustments, that will directly impact your local economy, from borrowing costs at your bank, to inflation to unemployment, to the ability of your own country to attract FDI. And when it comes to you personally, whether you're looking to borrow, to invest, to expand your business, to take out a mortgage, or even just shop online, the feds decisions will have a real impact on your wallet.