Five minutes!

Only five minutes before the U.S. stock market reopened, a shocking piece of bad news came.

The entire Wall Street, of course, now at JPMorgan Chase, it should be said that the entire JPMorgan Chase was shocked. Everyone was stunned! They all had incredible expressions on their faces!

Lin Feng was shocked when he heard the news. There are not many things in this world that can shock Lin Feng, but this is definitely one. Absolutely!

Because the Federal Reserve suddenly announced an interest rate hike! Yes, without any precautions, the Federal Reserve just announced an interest rate increase. Generally speaking, the Federal Reserve's interest rate hikes need to be discussed through the Federal Reserve Board of Directors. It can be said that this kind of discussion takes time.

You can't just issue a document and pass a proposal to raise interest rates. And there will be rumors before the rate hike.

Because of this, the Federal Reserve will also evaluate the market's reaction to see what the consequences of raising or lowering interest rates will be. After all, this is the most influential bank in the world. It directly affects the operation of the entire United States! Therefore, the Board of Directors of the Federal Reserve,

Will be extremely cautious.

Moreover, the Federal Reserve, as the central bank of the United States, obtains its power from the U.S. Congress. It is regarded as an independent central bank because its decisions do not need to be approved by the U.S. President or any high-level member of the legislature. It does not receive appropriations from the U.S. Congress, and its members are

It also spans multiple presidential and congressional terms. Including its financial independence is guaranteed by its huge profitability, mainly due to its ownership of government bonds. It returns billions of dollars to the government every year.

But! Yes, there is a but! But the Federal Reserve is subject to the supervision of the U.S. Congress, which regularly observes its activities and changes its functions through decrees. At the same time, the Federal Reserve must work within the overall framework of economic and financial policies established by the government.

It can be said that the Federal Reserve is still not the kind of department that wants to do whatever it wants. It is impossible for the Federal Reserve to do whatever it wants. Moreover, the Federal Reserve's unique mechanism makes it impossible to suddenly raise interest rates.

The Federal Reserve in Washington is composed of 12 Federal Reserve Banks located in various regions of the United States. The Federal Reserve's main monetary policies are jointly formulated by the members of the Federal Reserve Board and the Chairman of the Federal Reserve Bank to avoid excessive concentration of policy decision-making power in a few

regions (such as Washington and New York).

The First Bank and the Second Bank of the United States were eventually forced to close because they were not accepted by the public. One of the important reasons is that these two banks are located in Philadelphia in the northeastern United States. Many people believe that they mainly serve some wealthy businessmen in the Northeast.

, not all Americans. The Federal Reserve learned this lesson seriously when it was founded.

In terms of organizational form, the Federal Reserve adopts a dual organizational structure of a federal government agency and a non-profit institution, thus avoiding the complete concentration of monetary policy in the hands of the federal government. The Federal Reserve has established 12 Federal Reserve Banks as non-profit institutions instead of governments

One of the original intentions of the institution is to consider the voices of both the government and the private sector when formulating monetary policy. Although the Federal Reserve in Washington is part of the U.S. federal government, the 12 Federal Reserve banks are not federal government agencies, but are non-profit

It is a private organization. However, it needs to be emphasized that the Federal Reserve Bank is different from ordinary private organizations. The Federal Reserve Bank is not for profit and, together with the Federal Reserve Board, assumes the public functions of the United States Central Bank.

It can be said that in this case, when the Federal Reserve announced an interest rate hike, there must have been rumors from the outside world. But what? But there was no rumor! The interest rate hike was announced just like this! It made everyone announce the interest rate hike without any precautions!

Moreover, the interest rate increase is so huge! Regardless of whether it is an interest rate increase or an interest rate cut by any national bank in the world, the range is very small, usually about 0.5%. It may be a bit larger, but it may also be a bit smaller, but it is definitely within

Within this range, it is definitely acceptable to everyone.

But this time, it was a fatal blow to everyone. Yes, a fatal blow! A fatal blow that made all stockbrokers feel that the end was coming.

5%, the Federal Reserve directly raises interest rates by 5%!

Before this rate hike, what was the Fed’s interest rate? 0.09%! Yes, you read that right, it’s an interest rate of 0.09%! This interest rate is almost non-existent. If you invest $10,000, it will be given to you in one year

9 US dollars of interest! Is this called interest? This is not interest at all! This amount of money can even be treated as if it does not exist at all.

But this time, the interest rate is directly raised by 5%! From the usual 0.5%, of course, from the Fed's side, it may be less than 0.25%, it has been directly raised to an astonishing 5.09% interest rate.

You know, such amazing interest rates can only exist in those third world countries. Why? Because these countries need people's money to develop people's livelihood facilities, and the country needs people's money. And when the country cannot print money at will, the country

The only way to do this is by raising interest rates to allow people to deposit their money in banks and then use it for the country.

However, in developed countries, the country does not need any livelihood facilities. Even if there are any, they can be solved by local financial allocations, and there is no need to borrow money from ordinary people. What's more, this kind of borrowing is illegal. Therefore, in developed countries,

The interest rate is quite low.

And now, the Federal Reserve is completely abnormal! 5.09% interest! With such a high interest rate, I believe there will be a lot of hot money deposited in banks. Most of Americans' money is in insurance or the stock market. Insurance

The money inside cannot be moved. Then you can only withdraw the money from the stock market and deposit it in the bank.

So, how do you make money in the stock market? Sell stocks! If you don’t sell, how can you save! And if you sell stocks, the stock market will plummet!

Plunge! Everyone was shocked at this moment. Originally, they thought that the stock market would rise sharply, especially when Lin Feng created a miracle. Although everyone got over their excitement and realized that there must be something fishy about it, no one was willing to go.

Exposed. Because this is a beautiful lie that benefits everyone.

But what was the result? As a result, before the market opened, there was an unprecedented interest rate hike!

5%! This is a fatal rhythm! How can the Federal Reserve play like this! This is completely shameless behavior! If they do this, what about Congress? What will Congress say! Moreover, the Federal Reserve must come up with a reasonable explanation!

Everyone roars!

What did Congress say? Congress said that they were extremely shocked by this incident. But they believed that the Federal Reserve should have a reasonable explanation. Therefore, they would make a decision after listening to the Federal Reserve's report.
Chapter completed!