We are with a friendly economic circle, Ari. You, the US, have cut the benchmark interest rate overnight, and you say this is an action in 10 years and 7 months?
Yes. There has been a move that will have a major impact on the flow of money in the world in the future. In the Federal Reserve system, which determines the US benchmark interest rate, the US benchmark interest rate fell 0.25 percentage point from 2 percent to 2.25 percent at 3 am.
In the United States, in December 2008, when the financial crisis hit, we lowered the benchmark interest rate to virtually 0%, then kept the ultra-low interest rates and worked hard to release the money for a few years, We raised the benchmark interest rate by about a year. And then it was down for the first time in almost 11 years.
As a matter of fact, the cuts themselves have been announced recently by the US financial authorities. What the world was wondering was how long it would take to get down, but President Trump said, "It is not enough to just get off. I have to get down a lot at once."
But it did not come down as much as President Trump did. Only one step came down.
Anyway, even if it is not now that the interest rate has been reduced again in almost 11 years, the US and the world economy will not improve in the future. Are you looking at this?
Once in the world, the overall game is not good already, the United States is a bit different. The United States is in a good condition recently alone in the world. Recorded is the longest boom ever.
There are signs that the pace of the US economy is slowing down, but it is still an expansion in terms of the economy cycle.
Powell, the US central bank governor, said at the beginning of the day, "We have clearly made an insurance cut," he said, referring to why the economy is lowering interest rates.
It is okay to take a medical checkup now, but I do not know if you have a preliminary insurance policy.
The biggest reason why America needs insurance is the US-China trade war led by President Trump.
The tariffs on cheap imports from China to the United States, and, in fact, the scale of the world trade itself is reducing this war.
This, of course, not only in China, but also in many countries around the world. It could also be a blow to the United States.
Besides, I'm sure this is a long play. So, now that the US market is healthy alone, but the world market has been blowing cold, so the United States can catch a cold, so I took insurance.
Even if the trade war with China continues, the United States will have to make more money in the market to keep the boom, so that people can invest and consume more.
President Trump, who leads the trade war, is one of the reasons he just asked me to drop a lot this time.
Even if we continue the trade war with China, we will keep the pace of US economic growth from falling even before next year's presidential election.
What is the impact of the US interest rate cut on the US at night, when the US cut the benchmark interest rate ahead of us?
Once the dawn cuts were expected in the market today. We have reflected this estimate already, so we lowered the benchmark rate in mid-month.
But how much harder will our game be? And when and how much will the US cut interest rates further? We will respond to this.
However, unlike the US financial authorities' anticipated turnaround in the market, we did not give any further cuts today. I was left to say that I would respond according to the economy in the future, but I cut the line because it was insurance.
It is a measure that the money is obviously going to the market after the US interest rate decision comes out at the dawn this morning, but the US stock price falls down all at once, and the market is over. "Was not it coming again soon?" And the so-called expectation is a little off.
The global stock market, including our market today, is likely to have a similar appearance at first.
Still, anyway, as the US has turned its backward direction to 11 years, it is now a signal to continue to make more money as Europe, Japan,
Then we will come to you with the same signal. It is the exchange rate that keeps pointing out that in this situation, we should pay more attention than interest rates.
It is said that there are many places where the world's major nations are already at extremely low interest rates except for the United States, and there is an atmosphere to control money flow and influence trade, rather than making money by lowering interest rates.
President Trump also wants to make the dollar cheaper because of this. But today, we do not see the signal of further US interest rate cuts as the market expects.
[Friendly Economy] We have paid for the money, but the 'beauty stock' ... Exchange Rate Attention
We are with a friendly economic circle, Ari. You, the US, have cut the benchmark interest rate overnight, and you say this is an action in 10 years and 7 months? Yes. There has been a move that will have a major impact on the flow of money in the world in the future.