As the Federal Reserve raises interest rates, the exchange rate of the US dollar rises and the US dollar strengthens. The impact on export enterprises is that when foreign buyers buy China products, the price of China products rises relatively due to exchange rate changes, which affects the sales of export enterprises.
Second, the impact of rising interest rates on corporate financing costs.
Raising interest rates by the Federal Reserve will lead to an increase in domestic interest rates in the United States, which will affect the financing costs of enterprises, especially those that rely on external financing.
Third, financial markets are affected.
Raising interest rates by the Federal Reserve will lead to fluctuations in financial markets. Due to the change of interest rate, the stock market, bond market and foreign exchange market will all be affected, so investors need to be prepared for market fluctuations.
Fourth, the impact of monetary policy.
The Fed's interest rate hike will affect monetary policy, American economy, inflation rate and American economic growth rate.
Verb (abbreviation for verb) The behavior of investors is affected.
The Fed's interest rate hike will affect investors' behavior, and investors will be more cautious, pay more attention to changes in interest rates, and reduce venture capital to obtain higher returns.