The Federal Reserve raises interest rates again! How will the peak season in the second half of the year go?

As the largest money-making market, the peak season of cross-border e-commerce can be said to be the hope of the entire village. Whether to eat meat or vegetarian this year depends on the trend of the United States in the second half of the year.

The Federal Reserve recently announced that it would raise interest rates by another 25 basis points.

This is the 11th time the Federal Reserve has raised interest rates since last year, and the U.S. federal funds rate has risen to 5.5%, the highest level since 2001.

The Federal Reserve is the institution that formulates monetary policy in the United States. Like our central bank, it adopts a tight monetary policy, such as raising interest rates, during inflation, and a loose monetary policy, such as lowering interest rates, during deflation.

The Fed's interest rate hike means that the U.S. dollar still has irreplaceable vitality in the market, allowing a large amount of dollars distributed around the world to flow into the United States. Investors can invest in the U.S. market through more ways, causing the U.S. dollar exchange rate to appreciate. Some market prices denominated in U.S. dollars will fall, increasing China's export expectations and causing certain fluctuations in the RMB exchange rate.

In just one year and five months, the interest rate was raised 11 times, raising the federal benchmark interest rate from 8.5% to 11.5%. This was because the Reagan administration stimulated economic recovery through tax cuts, which caused inflation to soar as the economy recovered. The inflation rate once reached 13.5%, and then the Federal Reserve had to adopt rapid monetary tightening to curb inflation.

Generally speaking, the US has an economic cycle of about half a century. Basically, the Fed raises interest rates to control inflation. Unless the economy is in a rapid recession or employment problems continue to fall short of expectations, the Fed will generally not adjust interest rates. This time, the continuous adjustment may be due to the surge in inflation data after the outbreak of the epidemic. Of course, the most direct reason is the rapid rise in energy prices caused by the Russia-Ukraine war, which led to interest rate hikes.

But what you gain from Prime Day is just the tip of the iceberg in your pocket. It is estimated that the peak season this year will be so prosperous that you will definitely have enough money for shopping.