Federal Reserve lowered interest rates. What's next?
According to yesterday’s meeting of the Federal Reserve and the subsequent press conference, the officials decided to lower interest rates of the country by 0.25 percent which now brings interest rates to 1.75-2 percent a year.
Of course with interest getting lower, social loans are going to become cheaper. National American bonds are also going to start losing price. This can lead to investors seeking other instruments for investing – something with a higher yield. They can even turn to the bonds of the countries that display high level of investing attractiveness.
After the announcement American market started to fall. Dow Jones lost 0.7 percent, S&P 500 decreased 0.8 percent and Nasdaq lost as much as 1.1 percent.
It is also feared that this Is not the last decreased in interest rates this year. This means that the greenback might be getting even weaker and gold might keep on soaring in price.
Such is the news from the USA. Will American economy stand or will Chinese surpass the growth and occupy number 1 spot?
Well, that is only for history to tell!
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