The positives of an interest r

The positives of an interest rate cut has been overstated. Whilst it will benefit companies and individuals who have floating rate loans, those on fixed rate ( essentially long term ) loans will not benefit

The risk is that it will force unwinding of particularly, USD assets funded by JPY borrowings. This will result in a weaker USD already battered by dedollarisation in trade transactions, eroding confidence in USD as a reserve currency ( note latest move by France to illegally seize Russias USD assets) and anxiety over geopolitical risk in the Middle East and Ukraine. The end result will be stagflation. Not a scenario to look forward to.

How Will Fed's Rate Cut Affect Your Life?

Whether your are Singaporeans or Aussi or Kiwis, people with home loans could see their burden eased as banks will or already follow the Fed by significantly lowering mortgage rates. With the Fed shifting focus from rate hikes to cuts, it signals that inflation might be easing faster than expected. ----------- Do you think rate cut would bring positive impact to your life? Will your investing trend shift?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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