VV怡宝

I just received confirmation that at 3:00 AM Beijing time on December 11th (late tonight), the Federal Reserve will announce its latest interest rate decision. This is not just ordinary financial news; it directly influences whether our cryptocurrency account numbers turn red or green!
Next, let Yi Bao explain the ins and outs of this in the simplest terms.
1. What is the purpose of this meeting? To put it simply, it's one word: lower!
The market generally predicts that the Federal Reserve will lower the interest rate from 4% to 3.75%, which is a decrease of 25 basis points. What does this mean?
You can think of it as the 'faucet' of the entire financial world. Previously, to combat inflation, the Federal Reserve tightened the faucet (increased interest rates), making money more expensive and leading to a shortage in the market. Now, they are preparing to loosen the faucet a little (lower interest rates), which means that in the future, the money flowing in the market will gradually increase.