The increase is the federal funds rate, and the interest on bank deposits and loans will also increase. The federal funds rate is the inter-bank loan interest rate in the United States, which is the interest rate at which major banks in the United States lend federal funds to make up for reserves or exchange bills. The Federal Reserve raised interest rates to reduce the money supply, the dollar appreciated, and the RMB depreciated against the dollar.

What is the rate cut by the Federal Reserve?

Fed's interest rate cut refers to the way that banks change cash flow by adjusting interest rates. When the bank lowers the interest rate, the income deposited in the bank will decrease, so lowering the interest rate will lead to the outflow of funds from the bank, and the deposit will become investment or consumption, thus increasing liquidity.