#Trump2024 has recently stated that the American economy is doing well and that the dollar has no issues, but is that true ????
Dollar Index
The dollar has been in free fall since the dollar weakened, so a decrease in interest rates currently will only lead the dollar into an unprecedented decline, and I have already mentioned here its correlation with the yen, and if the Japanese economy continues to fall, we risk seeing an even weaker dollar, which will worry investors
Indicators of the American economy
The inflation rate in the USA is 2.7%, which may seem manageable for the Fed as the Fed's goal is to keep inflation at 2%. Therefore, for now, there is no urgency to lower interest rates, but the unemployment rate is 4.4%, which is also not too high to consider a reduction in rates.
Investor expectations
Most investors expect interest rates to remain at 375 or 350, which translates to 3.75% or 3.50%. They have also looked at current statistics and see no reason for rates to be reduced, but we are still waiting #powel . This guy is strange.
Impact on Bitcoin
Since the announcement of a potential interest rate cut in the USA, Bitcoin has risen by +1.03% at the time I am writing, and it has reached $90k. However, if we maintain interest rates, I foresee a drop in Bitcoin to around $86k or $84k.
Impact on gold
Gold is still on an upward trend regardless of the Fed's decision. Gold will continue its steady path, but maintaining rates will only delay its rise. Conversely, if we lower rates, gold could easily lift to $5500 and continue its journey smoothly. That's all.
And what do you think? Are we going to reduce rates or increase them??? Type your thoughts.
