The impact of the Fed's interest rate hike
The impact of the Fed's interest rate hike is as follows: 1. When the Federal Reserve raises interest rates, the deposits in the bank will increase, so the amount used for market consumption will decrease, which indirectly leads to a decrease in the sales of China's export trade; 2. If the US dollar appreciates after the Fed raises interest rates, the currencies of other countries, including RMB, will depreciate in the short term in the money market, and the depreciation of RMB will directly lead to the intensification of China's capital outflow; 3. With the appreciation of the US dollar, the commodity prices denominated in US dollars will fall. For example, the drop in foreign oil prices will indirectly reflect the adjustment of China oil prices and have to be lowered. 4. In the long run, if the Fed raises interest rates after a certain period of time, it will also enter the interest rate reduction cycle, then the RMB will rise against the US dollar, RMB and other foreign currencies will rise, and a large amount of capital will flow into China. Zhang Le Fortune Link, Huatai Securities' one-stop wealth management platform, can understand industry information and stock market dynamics. Huatai Securities, intimate housekeeper, everything you want is here. Click on the picture below to join us.