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Thread: What impact will Fed interest cut have on China's economy?

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[quote=DREAMLIFE,247692]In order to deal with the cridit crisis and possible economic recession, the US Federal Reserve declared to cut the interest rates 50 basis points from 5.25% to 4.75%. It is the first time US has cut its interest rate since 2003. Encouraged by this move, the Dow in New York stock market increased a lot. Meanwhile, global shares enjoyed great jumps. On the other hand, US dollar dropped a lot. It went its lowerest downturn in 15 years.

So far, It is unknown that whether the Fed will continue to lower its interest rate. Some experts analyzed that dollar will be faced more severe drop if interest cut goes on. On other hand, RMB will face more pressure of appreciation. What's more, China' economy will be affected by the interest cut.

Recently, China has always been trying to curb its inflation risk and overheated economy by raising its interest rate. But the result was not satisfying. If the Fed continues to cut its interest rate, obviously China's economy will be affected.

In your opinion, what impact will the Fed interest cut have on China's economy? Looking forward to your shrewd views or opinions.

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