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Aggressive interest rate hikes by the Federal Reserve led to a sharp decline in the US stock market in the second quarter, the biggest decline in history. What effect will it have?
The Fed's interest rate hike will affect everyone's life, and it will also lead to different degrees of economic crisis in many countries.

To some extent, when the inflation in the United States is so serious, the inflation in the United States will be transmitted to all parts of the world through raising interest rates, which means that all parts of the world need to pay for the inflation in the United States. Especially when the Fed raises interest rates, because the Fed's interest rate hike will further lead to the rise of the US dollar index, and the US dollar will become more scarce. So this method will lead to the return of all kinds of capital dollars to the United States, and this method will also lead to the explosion of global assets. Therefore, the impact of the Fed's interest rate hike on the global market is indeed very great.

The Fed's interest rate hike will affect everyone's life.

You can try to understand that when the Federal Reserve raises interest rates, this behavior will first lead to a large reduction in the net assets of ordinary Americans, and at the same time spread this problem to all parts of the world. For foreigners, if a person holds a lot of assets, his assets will shrink, so everyone's life will be negatively affected.

The Fed's interest rate hike will also affect the stock market.

It is precisely because the Fed keeps raising interest rates that the US stock market has made a certain correction. Whether for Nasdaq index or American stocks, the comprehensive market value of American stocks has shrunk by several trillion dollars. Nevertheless, since the Fed's interest rate hike has not significantly curbed inflation, the Fed may adopt a more aggressive interest rate hike strategy, which will further have a negative impact on the stock market, and the stock markets of some small and medium-sized countries and regions may even collapse directly, because a large amount of funds in these places will flow back to the United States.

Finally, the Fed's interest rate hike will spread American inflation to all parts of the world. Even if ordinary Americans don't reduce consumer demand, everyone needs to pay for inflation in the United States when they have money.