Will the U.S. Fed rate cut impact the cryptocurrency market? No? Here's why it will 👇🏼 The U.S. Federal Reserve has cut interest rates by 25 basis points (0.25%) for the first time in four years. While the reduction may seem small, it could positively influence interest rates. WHAT IS A RATE CUT? A rate cut is when a central bank lowers its interest rate, which is usually the policy rate that banks use when they borrow or lend to each other overnight. When the Federal Reserve lowers interest rates, the cost of borrowing money becomes low. Institutions, and individual investors can now take loans at lower interest or refinance existing debt at a cheaper rate. Banks themselves can borrow from one another at a lower cost, so they’re usually more willing to lend out. SO HOW DOES IT CREATE MORE CASHFLOWS FOR THE PEOPLE? When the borrowing cost is reduced, it encourages more room for lending and spending across board. As a result, investors suddenly have more cash available,...
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