Preface: The United States Continues to Raise Interest Rates, Increasing Them from 5.25% to 5.5%?

Since last year, the United States has raised interest rates to unprecedented levels, attracting the attention of the global economic community.

The Federal Reserve's interest rate policy has been reduced to 5.25%, but market expectations for the Federal Reserve to lower interest rates continue to heat up.

Because the Federal Reserve has already raised interest rates to 5.25%, but the Federal Reserve is still continuing to raise interest rates.

Now, countries around the world are facing inflationary pressures, especially European and American countries, where inflation is severe.

The Federal Reserve does not lower interest rates, what is the reason for this?

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The United States is a capitalist country, and capitalists are very greedy.

They will not miss any opportunity to make a profit, and the reason for the Federal Reserve's continued interest rate hikes is to profit for the capitalists.

The Federal Reserve's interest rate hikes will trigger a chain reaction in the global economy, and may even affect the economies of other countries.

This inevitably leads to the mention of the United States' debt of up to 35 trillion.They must find a way to raise interest rates so that they can repay the interest on the debt.

The Federal Reserve's interest rate hikes will cause the US dollar to appreciate, which in turn will reduce the United States' debt.

Therefore, it is imperative for the Federal Reserve to continue raising interest rates.

This will cause suffering in other countries. Is the United States about to continue raising interest rates and harvest global wealth again?

Reason for the Federal Reserve to raise interest rates again?

On September 20, 2023, the Federal Reserve announced that it would raise the federal funds rate range by 25 basis points, raising the rate range to 5.25%-5.50%.

Federal Reserve Chairman Powell stated that although the increase in US inflation has continued to decline, it is still higher than the 2% target set by the Federal Reserve.

Therefore, the Federal Reserve still needs to closely monitor the trends in economic growth and inflation, and take necessary measures to ensure economic stability.

The Federal Reserve also predicted that higher interest rate levels will be reached in the coming months, as the US economy continues to expand.

The CPI has also gradually declined, from 8.2% in September to 6.6%, indicating that the level of US inflation is also gradually being controlled.However, the Federal Reserve remains highly vigilant about raising interest rates.

The magnitude of this rate hike is not significant, and the U.S. economy continues to perform strongly, even exceeding expectations in terms of strength.

Many analysts believe that the Federal Reserve may continue to raise interest rates for some time.

Due to the good national credit of the United States, the dollar has also become the world's currency, and countries are worried about being harvested by the United States.

In order to protect the status of the dollar, the Federal Reserve raises interest rates.

If interest rates are too low, it will lead to the devaluation of the dollar, affecting its global status.

Moreover, even with interest rate hikes, the dollar will also promote capital inflow into the United States, boosting the U.S. economy.

The United States is a consumption-oriented country with a very high level of consumption.

If the U.S. economy declines, the economies of many countries will also fall.

What are the dangers of the Federal Reserve continuing to raise interest rates?The Federal Reserve's continued interest rate hikes will trigger a chain reaction in the global economy, potentially affecting our country's economy as well.

Our country's economic strength in today's society is relatively strong and can withstand the impact of the US dollar on our economy to a certain extent.

However, the United States' continued interest rate hikes will lead to turmoil in the financial markets of countries around the world, increasing the economic risks in our country's financial markets, raising the financing costs for our country's enterprises, and being detrimental to the high-quality development of our country's economy.

If other countries maintain interest rates at a lower level, while the United States raises interest rates to a higher level, this will lead to the flow of funds to the United States.

For other countries, this may lead to higher financing difficulties for domestic enterprises, and the prices of imported products will also rise.

This will affect the profitability of enterprises in other countries.

The inflation risks in these countries will also increase, and their domestic industries will be eroded by the United States.

It directly affects our country's national security and economic security.

The global financial turmoil involved by the United States will increase the economic risks faced by our country and increase the pressure faced by our country's financial markets.

Therefore, the impact of high interest rates in the United States is not limited to the United States alone, but also affects other countries.China's economy is relatively capable of withstanding the impact of high interest rates in the United States, but many other countries are not.

The impact of high U.S. interest rates is significant, directly leading to a substantial decline in the export volumes of China's manufacturing industries, such as textiles, garments, and toys. The domestic inflation level may also rise as a result.

It could even lead to an increase in unemployment in China, making the social situation more unstable.

Will the Fed's continued rate hikes affect China?

Although the Fed's continued rate hikes will have an impact on China's economy, China's resilience is relatively strong.

China is an export-oriented country, and many countries have a great demand for Chinese products.

However, due to the increased tariffs imposed by the United States on Chinese products in the market, the sales of Chinese products in the U.S. have declined.

This has had a certain impact on China's exports.

China imports some goods from the United States every year, especially raw materials. If the U.S. raises tariffs, China's production costs will increase, and profits will be significantly reduced.

Moreover, the United States has always wanted to suppress China's economic development. Now, with significant power, the U.S. can determine the direction of the international economy.The United States' move is a case of killing the chicken to scare the monkeys, making it clear to other countries that their economic fate is in the hands of the U.S., and that to prosper, they must watch the U.S.'s face.

Our country should enhance its economic strength and gradually move to the center of the world stage to compete with the United States head-on.

We should also strengthen cooperation with the European Union and emerging market countries to alleviate their burdens.

At the same time, we must promote changes in the global economic governance structure to achieve inclusive and sustainable development of the global economy.

Balance the hegemonic actions of the United States.

Conclusion

Due to the United States facing a debt of $35 trillion, it has been trying to repay its debts, and the reason the Federal Reserve continues to raise interest rates is for this purpose.

The Federal Reserve's interest rate hikes will solve the United States' problems, but they will have a certain impact on other countries and even affect the global economy.

The United States wants to continue to harvest the global economy and consolidate its position in the global economy.

Compared to the financial operations of the United States, it is still necessary to remain vigilant.The United States has accumulated such a high level of debt that it may be impossible to repay. If the Federal Reserve lowers interest rates again, there will be even less fiscal revenue available to service the debt.