Haddadin: The markets, currencies and gold are in a foggy state after the interest rate cut for these reasons.

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Haddadin: The markets, currencies and gold are in a foggy state after the interest rate cut for these reasons.

Expert, strategist and economic analyst engineer Mohannad Abbas Haddadin said that the US Federal Reserve headed by Jerome Powell reduced interest for the third time this year by 25 points with an ill-considered programmed reduction compared to the results of inflation, which is likely to rise next year 2025, this reduction was made by the outgoing US administration to leave for the next President Trump inflationary problems, the Biden administration could not reach the target of 2% over the two years, but things will get worse next year with the president's new policies.اضافة اعلان

Biden made a short-term fix to the US economy by significantly increasing the debt to finance government projects and employment, which slightly revived the US economy during 2024 to avoid recession for fear of losing the election, despite these efforts, he lost the election and inflation returned to the front.

The next president, through his economic policy in which he will reduce government spending and thus reduce jobs, and the pressure on the immigration file, which is cheap labor, will lead to a slowdown in the US economy, and expensive prices, especially if he imposes taxes on imports, the US economy in the first year will be fraught with uncertainty .

The financial and stock markets have been affected by the decline as a result in light of a strong dollar, and it also affected the euro, which is likely to fall further, as well as the demand for oil will decrease and may fall below 70 dollars per barrel next year. 

These analyses will not be far from any geopolitical tensions that may turn the scales upside down, especially if the next president fails to stop the Ukrainian war, as well as if the United States or Israel strikes the Iranian nuclear reactor, and finally China makes any surprise steps on the ground towards Taiwan.