The Federal Reserve's strategy of maintaining elevated interest rates has sparked concerns among analysts and market observers. Commentators suggest that the Fed's approach, aimed at controlling inflation, may lead to significant disruptions in the financial system. Some analysts believe that the prolonged high rates are part of a broader economic strategy, potentially aimed at countering China's economic influence by supporting the U.S. dollar. This dynamic could hinder China's ability to lower its own interest rates to stimulate its economy. The Fed's stance has been interpreted as a warning that it will continue to keep rates high until a significant economic event occurs, with some suggesting that the current financial environment is already showing signs of strain.
Fed after 2 years of high rates: "We don't want to wait too long until something breaks" *everything breaks*
The FED wanted to keep rates high until something broke. https://t.co/6cfrieESL4
Whatever else they might be, the Fed’s persistently high interest rates are also part of a financial war against China. High rates prop up the dollar, which puts pressure on the CNY and prevents China from lowering its own rates further to stimulate its economy. Never mind that… https://t.co/YSRkVHmAk0