What Happens When The Fed Cuts Interest Rates?
The US Dollar had everything aligned to its favor through the first half of 2021 and yet the currency struggled to gain serious traction. Some may say that the benchmark currency was merely playing out the role of an unwanted safe haven as the capital markets continued their post-pandemic climb, but I dont believe that to be necessarily the case. The same appetite for return in this speculative environment finds the Greenback in good position to draw capital to trend leaders like the S&P 500 pushing a record high or local yields bolstered by a rising 10-year Treasury as its baseline. The struggle arose from the Federal Reserves diligent effort to undermine surprise.