What impact will the Fed's interest rate hike have on crude oil? It will be negative in the short term. In fact, whether it is crude oil or other commodities, the strength of the US dollar index will bring downward pressure; But what determines the long-term trend of crude oil is the change of economic fundamentals and the relationship between supply and demand. If raising interest rates is negative, then lowering interest rates should be profitable. However, when the financial crisis broke out in 2008, the United States adopted an ultra-loose monetary policy. Extended information: The Federal Reserve, known as the US Federal Reserve System, is the authority of US monetary policy. Like China's central bank, its duty is to maintain a reasonable inflation level in the region and stabilize the financial market. That is, when inflation occurs, we will adopt a tight monetary policy, such as raising interest rates, and when deflation occurs, we will adopt a loose monetary policy, such as cutting interest rates. The Federal Reserve is not state-owned. It is an independent institution authorized by Congress and established by member banks. Meanwhile, the Federal Reserve has the following functions: 1. Guide the policy power of the Federal Reserve Bank. For example, the budget and expenditure of each Fed bank are approved by the Fed, which can appoint one-third of the board seats of each Fed bank, and the president nominated by the board of directors of each Fed bank is also approved by the Fed. 2. The Federal Reserve has the right and obligation to exercise its rights as a national payment system to protect consumers' credit; It is also a bank of the US Treasury and the government, providing financial services to the Treasury and government agencies and maintaining the stable operation of the entire US financial system. First of all, the operational mechanism of the Fed is independent. As the central bank of the United States, the Federal Reserve obtains power from the United States Congress. It is considered as an independent central bank because its resolutions do not need to be approved by the President of the United States or any senior legislature. It does not receive funding from the US Congress, and its members' terms span many presidents and members of Congress. Its huge profitability ensures its financial independence, mainly because it owns government bonds. It returns billions of dollars to the government every year. Of course, the Fed is supervised by the US Congress, which regularly observes its activities and changes its functions through decrees. At the same time, the Fed must work within the overall framework of economic and financial policies formulated by the government. Decision-making principles All financial institutions in the United States that accept depositors' deposits have accounts in the Federal Reserve. In addition to the member banks of the Federal Reserve, these financial institutions also include credit cooperatives, savings and loan associations and branches of foreign banks in the United States. The Federal Reserve is required to require all financial institutions that absorb depositors' deposits in the United States to deposit some funds in the Federal Reserve to meet the sudden withdrawal needs of depositors. This capital account is called a reserve account. According to the requirements of the Federal Reserve, the reserve account balance of each institution shall not be lower than a certain proportion of its short-term deposits. This ratio is called reserve ratio or deposit reserve ratio.