In 222, the Federal Reserve finally started to raise interest rates, which also means that the central banks of major countries in the world need to adjust their current policies in this environment. However, in China, it has not followed the pace of raising interest rates by the Federal Reserve, but has maintained the policy of reducing interest rates by the central bank. In order to curb domestic inflation

At this stage, domestic inflation in the United States is still very serious, and the imbalance between supply and demand of money is still going on. In December last year, the CPI reached 7%, which made the inflation in the United States return to 4 years ago overnight. The effect of this interest rate hike is very clear. The Fed hopes to raise the benchmark interest rate of loans to the level of inflation in a short time, so as to save the economic development of the United States.

At present, the federal government's interest rate is lower than the neutral interest rate calculated by the Federal Reserve, so the Federal Reserve will raise interest rates. In fact, the Federal Reserve's legal mandate is to increase employment opportunities and curb inflation.

Under the situation that the epidemic is still spreading all over the world, because the US dollar occupies the advantage and influence of the international currency, under the fiscal policy of quantitative easing, the Fed's interest rate hike can promote the return of a lot of US dollars, which in turn can bring many benefits to the US economic development. Alleviating the employment problem in China

Since the outbreak of the epidemic, the COVID-19 epidemic has not been effectively managed in the United States, which has caused the worsening national epidemic to cause great harm to social and economic development. The decline in the number of unemployed people in the United States has a direct impact not so much on the current policy of preventing and controlling the epidemic. According to the theory, raising interest rates can stimulate the economy, and then help all walks of life affected by the epidemic to gradually recover, provide more employment opportunities and alleviate the employment problem. Reducing the debt ratio according to raising interest rates

The Fed also intends to reduce its balance sheet to 9 million US dollars according to raising interest rates. Powell indicated that the balance sheet reduction will take place after raising interest rates, but no decision has been made on the timing and speed of the balance sheet reduction, and the Fed will continue to hold several meetings to discuss the issue of reducing the balance sheet.

it is not difficult to see that the apparent prosperity of American economic development is actually just a false report, because the US dollar occupies the dominant position in the international currency, and the United States can take advantage of this advantage to plant other countries anytime and anywhere. However, American bonds have now reached $3 billion, and raising interest rates can only further increase the pressure on debt repayment.

China's adoption of the central bank's RRR cut can reduce the operating and capital costs of foreign enterprises in China, improve profits, and actually achieve the effect of further controlling foreign-funded enterprises.

Generally speaking, China often does not follow other countries to raise interest rates in response to the Fed's interest rate hike, but carries out the counter-actual operation of the central bank's RRR cut to face it calmly, which is completely based on China's own economic development, in order to balance the internal and external economic development and promote the development of the real economy. It is a correct choice that is in line with China's specific situation.

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