Recently, globalFinanceOnce again, the world was beenFederal Reserveshocked by the huge losses, this time the losses were as high as $860 billion. As the world's largest central bank,Federal ReserveWith its prudent policy, it has always been considered by the industry to be an institution that only makes profits and has no losses, and the scale of this loss is really unexpected. Such a huge loss has aroused questions and concerns from all walks of life, and has also triggered criticismU.S. FinanceConcerns about the future trend of the system and**.
However,Federal ReserveThe reason for the loss is not simple, and its root cause is the interest rate hike policy in the United States. Over the past few years, the United States has implemented a series of interest rate hikes to harvest global asset markets, and this is highInterest rate policyEventually led to the United StatesBond yieldsof the rise, and then makeFederal ReserveThe large number of U.S. bonds held in his hands **substantially**, resulting in huge losses. The emergence of this situation is surprising because historicallyFederal ReserveThere have hardly been losses of this magnitude, even in the 70s of the last centuryOil crisisPeriod,Federal ReserveNor did there be such a large loss.
It is worth noting thatFederal ReserveThe losses have not only affected the institution itself, but alsoU.S. FinanceThe system has had a significant impact. Federal ReserveYesBank of AmericaThe policy makers of the policy have always been the major onesBanksThe weather vane. And every yearFederal ReserveAll have to pay huge sums of money to the United States, after this year's losses,Federal ReserveFaced with pressure to reduce the amount of contributions to the U.S. treasury. Moreover, this loss is also highlightedFederal ReserveIn the process of harvesting global assets, not enough gains have been harvested to effectively realize themFinanceThe goal behind the empire.
Federal ReserveThe emergence of huge losses triggered the market to the United StatesEconomyConcerns about the situation and**. Some institutions** ifFederal ReserveContinuing to insist on raising interest rates or even keeping interest rates high will lead to nearly half of the small and medium-sized AmericansBanksUnable to withstand the pressure and going out of business. This ** further intensified the fight against the United StatesEconomyof panic and recession fears.
However, the United StatesEconomyThe data is still not optimistic on the surface, with many indicators pointing to the United StatesEconomyStrong, such as non-farm payrolls, industrial production data, etc., although showing the United StatesEconomyboom, but that's not the case. Consumption data and electricity consumption data show the United StatesRecessionsigns. It also makes people more worried about the United StatesEconomyThe real situation.
In this case, the market is widely expectedFederal ReserveYesCut interest ratesto stimulateEconomy。RecentlyDeutsche BankFederal Reservewill be carried out beyond expectationsCut interest rates, and market trading also indicates the United States in the coming yearCut interest rateswill reach an amplitude of almost 100 basis points.
Actually,Federal Reservehas reached a limit, and continuing to raise interest rates will inevitably exacerbate its losses, and even lead to even greater lossesFinanceCrisis. Plus the United StatesDebtThe scale is approaching its limit, and it would be dangerous to expand the debt. Therefore,Cut interest ratesIt has becomeFederal ReserveThe last option is also a reasonable way to deal with the current situation.
For the market, the expectation of this change has gradually reduced the expectation of harvest, so the trend in the future will be the United StatesEconomytowards recession, as wellCut interest ratesPolicy advancement. For us personally, we need to pay attention to the changes in this trend and prepare to deal with them in order to get through the comingEconomyDifficult times.
To sum it up,Federal ReserveHuge losses have triggered pairsU.S. Financesystem, but also exacerbated concerns about the United StatesRecessionexpectations. The market is widely expectedFederal ReserveYesCut interest ratesto stimulateEconomy, and this will also be the United StatesEconomyThe last choice faced. We need to keep an eye on the futureEconomychanges in the trend, and do a good job of countermeasures to deal with the possibleEconomyDifficulty.