Fed and Interest Rate



Fed decreased the interest rate again after a long time to help the United States' economic growth and inflation rate. This situation causes tongues to wag that "the American and World economy are not doing once again". 

Actually this question is not that wrong because Fed has not got the whole money ( 3 trillion dollars) back that released into the market after the 2008 global crisis. 

This raises the question that the United States' economy needs more capital in the market to recover itself. 

This is the new period in the world's economy, Capitalism requests more and more capital to keep people consume and to keep companies strong as usual. 

On the other hand, some of countries, such as Russia, China, India and Turkey, decrease the rate of using the international currency  ( e.g US dollar, Euro) that accepted by the World bank. Those countries collect gold and other valuable assets instead of paper money in their bank. 

These kind of issues push FED into crisis while the economical statistic shows that unemployment is the lowest in history, the economy creates many more jobs. 

I think we are on the verge of new economic and social crisis.   

Comments