After the Fed cut interest rates, the cost of using dollars decreased. As the US dollar is an internationally used reserve currency, it can be freely convertible. Without interest rate cuts, more US dollars will be converted into convertible currencies or commodities, and everyone will sell US dollars, which will lead to the depreciation of the US dollar.

The interest rate cut led to a lower exchange rate of the US dollar, which devalued other countries' currencies. Because international trade is mostly settled in dollars, the purchasing power of dollars declines, the money in the hands of Americans depreciates, and the prices of imported goods rise relatively, so the import capacity of the United States declines, and the prices of American goods denominated in dollars also fall relative to other countries' currencies, which is conducive to exports.