How does the Federal Reserve influence the value of the dollar?

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by (120 points)
To what extent does the policy of the Federal Reserve increase or decrease the dollar's value in the market?

1 Answer

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by (300 points)
Through the control of interest rates, the Federal Reserve is able to affect the value of the dollar. An increase in interest rates is normal for the Fed, which causes the dollar to strengthen relative to other currencies due to foreign investments as a result of high-interest rates. However situations stem where the Fed decreases interest rates and in such instances, it results in the weakening of the dollar. There are also the interest rate policies of the Fed which additionally help in controlling inflation l and the labor market conditions which further impact the economy and value of the currency as well.
by (100 points)
Why does it feel like every time the Fed moves, my wallet gets lighter?
by (100 points)
It’s common sense. In order to cut Fed must increase money supply. That spikes inflation. Bond holders then require higher yield on long term bonds which will cause long term rates to go up, while the fed is dropping short term rates. The fed obviously knows economics and knows this. But, their purpose is to save a dying economy at the expense of higher long term rates, until the collapse happens - in other words the rate cuts are designed to “kick the can down the road” at the expense of a worse collapse.   The final conclusion can only be that this is a controlled collapse, engineered as the great economic reset with the participants being the fed, well for me tho  Bitcoin is the ultimate defence against a tyrannical government.r.....I've been engaged in active trading and managed to grow a nest egg of around 2.3Bitcoin to a decent 24Bitcoin....I'm especially grateful to Francine Duguay, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
by (100 points)
Everything non dollar will appreciate
by (100 points)
This content did not touch on the most important issue about the USD at the moment. I.E. the debt climbing 1 T every 100 days.
by (100 points)
Ugh… isn’t the CPI still high? Also the housing market is ridiculous. With rate cuts, people will flock and pay insane prices
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