The Aftermath of Fed Making 0.5% rate cut.

Last weekend, I was hoping that Fed don't make the cut, but Fed made a 0.5% cut.

In the coming weeks, we are likely to see two events happening.

1. Weak US Dollar

2. Inflation, ie. Crude Oil hitting US$90 or higher.

Although, a collapse of US was unlikely to happen but at least in the next few months a weak USD are bound to happen. Most Foreign Players buy in USD for 3 things, Properties( Long Term ), Bonds ( depend on the years they buy ) & Stocks ( Short Term ). You guess what will happen next/latter.

A common practise for Central Banks around the world, is to use Interest Rate to control Inflation Rate. Recently, we are seeing China's inflation problem spreading globally. With the rate decreases, Commodities will raise lead by Crude Oil.

IMO, what Fed had did was to solve a current problem. They are lending money to gamblers ask them not to gamble again...

I have added S2 into the chart.