If the Fed cuts interest rates:

Impact on the United States:

①: The interests of depositors decrease, so they invest their savings in other investments to make up for their due interests.

②: the number of borrowers increases, and the amount increases. That is to say, it will stimulate economic growth and domestic demand.

③: The depreciation of the US dollar against other currencies (possibly) will increase the price competitiveness of American goods.

Extended information:

Impact of the property market: it will stimulate the property market to continue to pick up.

after this interest rate adjustment, for the person who buys a house by loan, according to the method of repayment of principal and interest with a loan of 1 million yuan and 2 years, if the interest rate is reduced according to the benchmark interest rate, the monthly payment will be reduced by 15 yuan; According to the preferential interest rate policy of 15% discount for the first suite, the monthly repayment amount will be reduced by 122 yuan after the interest rate cut, and the burden on buyers will be further reduced.

under this background, people in the industry generally believe that, unlike the reduction of the deposit reserve ratio several times since last year, the impact of this interest rate cut on the property market will be more obvious in the context of the rapid and obvious recovery of the current property market.

"In addition to housing demand, the most important thing for buyers to make decisions about buying houses is the expectation of housing price trend." Zhang Dawei, director of Beijing Zhongyuan Real Estate Market Research Department, believes that the credit policy is the most influential real estate control policy at present, and the credit line and interest rate level can be said to be the weather vane for people to judge the real estate market.

The relevant person in charge of the Ministry of Housing and Urban-Rural Development publicly stated that it is necessary to adhere to the regulation of the property market, and there must be no repetition. However, this interest rate cut may greatly change market expectations. For buyers who have been waiting to see, they may interpret the interest rate cut as the "policy bottom" has appeared, so as to buy a house as soon as possible.

Baidu encyclopedia-interest rate cut