How Fed Rate Cuts Affect The Global Economy
The Federal Reserve manages interest rates to influence financial conditions within the United States. But those decisions can also affect the posture of other central banks because many aspects of international finance rely on U.S. dollars. As the world moves away from a global round of economic tightening, central bankers in the U.S. are seeking to extend the economic expansion, which is among the strongest in the world.
Chapters:
[00:00-00:45] Cold Open
[00:45-02:48] Chapter 1: Economic tightening
[02:48-05:26] Chapter 2: The carry trade
[05:26-07:52] Chapter 3: The world’s lender of last resort
[07:52-09:41] Chapter 4: Other currencies
Produced and Edited by: Carlos Waters
Supervising Producer: Lindsey Jacobson
Animation: Christina Locopo
Additional Footage: Federal Reserve Bank of Kansas City, Getty Images
Additional Sources: Bank for International Settlements, Boston University, Council on Foreign Relations, Federal Reserve Bank of New York, Harvard Law School, International Monetary Fund, Massachusetts Institute of Technology, University of Chicago, PIMCO, Sovereign Wealth Fund Institute, Tax Foundation, White House
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How Fed Rate Cuts Affect The Global Economy
39 Comments
Why does it feel like every time the Fed moves, my wallet gets lighter? 😅
White House press secretary claims reducing interest rates will reduce prices. Has there ever been a dumber DEI hire?
https://youtu.be/bUmO9UIFU_0?t=2697
US is a candle burning from both ends, or a sinking ship where everyone has prepared to go overboard when it's time. Too early or too late would cost one, both an arm and a leg.
So much debts & deficit….but what the hell. Spend ourselves to oblivion…
American 🇺🇸 is the king and we all need to bows down to the dollar 👍👍👍👍
This video did not touch on the most important issue about the USD at the moment. I.E. the debt climbing 1 T every 100 days.
As for me, rate cuts mean I might finally be able to refinance my unholy amount of debt
Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024
US socialism on full display. In a socialist economic model, the production of goods and services is either partially or fully regulated by the government; this is referred to as central planning, and the economic structure that is created is known as a planned economy or a command economy.
What it will do is keep over valued homes over valued , possible that home value will increase again. This is all because of the trump administration lowered interest rates to much and caused a huge demand making real estate skyrocket along with building materials. When the demand goes up the price goes up. Interest rates are fine right where they are. Homes are unaffordable now because of the over valued price.
If there is an alternative, u would not have been interviewed
This comes gradually
I will miss making a safe 3-5% return with money markets and CDs. Get ready to have to take on more risk to get the same reward that interest used to pay on cash.
Gonzalez Donald Young Dorothy Taylor Dorothy
Several months ago I decided to actually research house Democratic party Policies,I compared that to what they tell us, There Total Lier's,I can't be part of the Lier Class, I'm shocked I don't support Liers
So, we're supposed to believe that the FED keeps wages in check. Obviously, they're not doing much to check those record profits for the CEO's and shareholders.
"They got money for wars, but can't feed the poor." – Tupac
The Only Opportunity I See Is From The United Kingdom With The Wealthiest That Religion ☮️🕎🔯☪️🛐🕉️ Show them where the economy need fixing particular i see what they mean by transparent 🪟 "different."
Informative. Incredible work. Thanks.
Regardless we are screwed
Man, these Fed rate cuts are really starting to mess with everything. I mean, sure, they were supposed to help, but now I’m feeling the pinch everywhere. My savings account is basically giving me nothing, and the stock market’s all over the place.
2015 Canada vs 2024 Canada . like Gentle horse vs sick donkey
too little and toolate .Never vote Liberals & NDP .
LIMA SCAM , Unlimted Refugees live in Hotel & international students
on the other hand 6% unemployment in canada
home crisis ,crime up & no doctor and schools
Now, cheap money again for hedge funds to buy up more assets so working class can be more indebted. Stupid
Jerome Powell says the economy is doing great and yet he cuts interest rates by half a point. 🤷♂️
Wuhans are so evil
The rich stay rich by spending like the poor and investing without hesitating then the poor stay poor by spending like the rich yet not investing like the rich
Brics will replace the dollar, biased video
Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
It became the most important because of Breton Woods and the fact that John Maynard Keynes lost there. Since the international currency became the Dollar, the FED – who controls the Dollar – also controls the world's economy. The FED's interest rates are, therefore, the rates that set other countries' interest rates. Really funny to hear CNBC not mentioning developing and poor countries on a video about the "global economy". Poor and developing countries have to increase their interest rates to 3 to 4 times that of the FED. Paul Volker's 1970s-1980s interest rate hike may have caused more pain and death around the world than many of the US military adventures abroad.
Central Bank's e-currencies are the same as paper currency – it changes nothing about the strength of a currency – specially because international transactions are already electronic.
Please… if you’re going to interview anyone such as Freya Beamish, have them use their phone. Freya’s webcam sound and visual quality is awful. It’s hard to listen to them when the sound is utterly abrasive. Insist they use their phone instead as it’ll no doubt be superior audio and video quality.
they mustve watched marketing monday
I've always been fascinated by how top investors achieve millionaire status through their investments. Currently, I'm sitting on $345K from a home sale and I'm torn between investing in stocks or holding out for a better opportunity.
Hi Sir, Does New Jersey have self gas stations Yes or no?
Sounds like a skeptical outlook on things then. With the rate cuts do you think it's best for us who are not conservative investors to focus on bonds or dividend stocks? I want to reallocate my 7-figure portfolio and I preferably want the assets with the best ROI.
This rate cut is one of the economic events of all time I'l tell you that much
The amount of insider trading by the private organisation called the FED
There is no trust since they broke brettenwood agreement.
Bro who owns this "Fed" that gives us unlimited power?
Powell is the worst chairman that the FED has ever had. (According to several sources). I agree 100%.
Let’s be honest, this is all about the election and helping out one candidate