Why does the Fed bite the bullet and not cut interest rates? The strategy of China and Japan.Heading into 2024, the Fed's interest rate cuts remain the focus of the world's attention. What is the purpose behind their actions?
The Fed's decision to keep the Fed's interest rate unchanged at its first interest rate meeting in 2024 was not unexpected. However, their insistence is confusing. Why are they so obsessed with not cutting rates? What exactly are their goals?
The latest news shows that Goldman Sachs has postponed the timing of the Fed's first interest rate cut from March to May. This postponement has sparked speculation and discussion in the market. While the world is expecting a rate cut from the Fed, they seem to have their own intentions.
On the one hand, China has lifted the restriction on the proportion of foreign ownership and allowed foreign capital to fully control banking and insurance institutions. This move is believed to be in line with the expectation of a rate cut by the US dollar. China's positive actions show that they are ready and willing to take on the challenge. China's huge market size is a huge attraction for US dollar capital, which provides the justification and timing for US dollar interest rate cuts.
Japan, on the other hand, has long tried to attract dollar capital at the expense of the yen and Japan**. They may hope to drive a massive repatriation of yen capital through the influx of dollar capital, a high-risk gamble but, if successful, will revitalize Japan's dormant capital and economy for years.
Despite the moves made by both China and Japan to attract dollar capital, the Fed is still insisting on not cutting interest rates. The reasons behind this are worth pondering.
It has been pointed out that behind the Fed is the Jewish consortium in the United States. These conglomerates, which control finance and manufacturing, influence U.S. economic policy by infiltrating the tech sector and politics. Especially after Biden came to power, Jewish conglomerates managed to take control of the Federal Reserve, which made the Fed's decision-making more in line with their interests.
The Jewish consortium holds the backing of the Democrats and Biden**, who want a big victory before losing the White House. Therefore, the Fed's insistence on not cutting interest rates may be in order to protect their own interests, namely to save the US financial system.
While Made in China and Japan** are both potential targets for U.S. capital, the Fed seems to be more focused on safeguarding its own interests in the current situation. Both Made in China and Japan** have remained firm under the pressure of rising US dollar rates. This situation has made the Americans have no choice but to stiffen up and not be able to do so. Kunpeng Project