US Federal Reserve: New cycle of interest rate cuts in sight?

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The Federal Reserve is grappling with the decision to cut interest rates as the country's high government deficit weakens the dollar. Find out more about the current economic situation.

Die US-Notenbank ringt mit der Entscheidung, die Zinsen zu senken, während das hohe Staatsdefizit des Landes den Dollar schwächt. Erfahre mehr über die aktuelle wirtschaftliche Lage.
The Federal Reserve is grappling with the decision to cut interest rates as the country's high government deficit weakens the dollar. Find out more about the current economic situation.

US Federal Reserve: New cycle of interest rate cuts in sight?

The question of whether the US Federal Reserve will lower interest rates in the near future is currently not only affecting investors on New York's Wall Street, but also investors worldwide. It appears that the Federal Reserve (FED) will need more time to adjust its key interest rate again. Among other things, this reluctance is attributed to the high national deficit in the USA, which is weakening the external value of the US dollar.

Joe Biden's policy decisions could prevent the Fed from cutting interest rates quickly. The US government is relying on massive economic stimulus programs and spending to stimulate the economy and cushion the consequences of the pandemic. This leads to an increase in the national deficit, which in turn limits the Federal Reserve's scope for maneuver.

Investors should prepare for a longer period of time before the Fed takes action to cut interest rates. Economic developments and political decisions in the USA will have a decisive influence on when the Fed will be ready to initiate a new cycle of interest rate cuts.

It remains to be seen how the situation will develop in the coming months and whether the FED will change course. Investors should monitor developments closely and prepare for any potential impact on their investment strategies. The economic future and the Fed's interest rate policy are closely linked and will have a significant impact on markets worldwide.