How Fed Rate Cuts Affect The Global Economy

The Federal Reserve manages interest rates to influence financial conditions within the United States. But those decisions can also affect the posture of other central banks because many aspects of international finance rely on U.S. dollars. As the world moves away from a global round of economic tightening, central bankers in the U.S. are seeking to extend the economic expansion, which is among the strongest in the world. Chapters: [00:00-00:45] Cold Open [00:45-02:48] Chapter 1: Economic tightening [02:48-05:26] Chapter 2: The carry trade [05:26-07:52] Chapter 3: The world’s lender of last resort [07:52-09:41] Chapter 4: Other currencies Produced and Edited by: Carlos Waters Supervising Producer: Lindsey Jacobson Animation: Christina Locopo Additional Footage: Federal Reserve Bank of Kansas City, Getty Images Additional Sources: Bank for International Settlements, Boston University, Council on Foreign Relations, Federal Reserve Bank of New York, Harvard Law School, International Monetary Fund, Massachusetts Institute of Technology, University of Chicago, PIMCO, Sovereign Wealth Fund Institute, Tax Foundation, White House