21.03 - American Treasury signals about big trouble for USD
- by Anna K.
Interest rates. When you go to a bank and take a loan interest rates in the tool that is telling you the percentage you are going to be returning to the bank together with the said loan. The lower interest rates are, the more often people are going to the banks to take loans, as percentage Is not that big and the more money is returned to the government through this percentage. And of course, we can say that the lower the interest rates are set by the government, the more money they need at a particular moment in time. And the more money is needed, the more trouble the national currency is in. And it seems that dollar and the economy of the USA is in big trouble as head of American Treasury Jerome Powell announced that interest rates are not going to hike and are going to be lowered in the USA.
Of course readers picked up on that and dropped dollar like a proverbial hot potato as we are now left to think – what kind of trouble is US economy in right now? Although Powell kept saying that economy is good, lowering interest rates is not something that the government with healthy economy does.
Of course with the selloff like that we are left wondering – which assets are going up and which assets are going down today? What is to be sold and what is to be bought? Trading signals are going to help you answer all these questions!