Rebirth 1980: Marrying my sister’s best friend at the beginning

Chapter 633 The Federal Reserve raises interest rates!

On December 12, the atmosphere on Wall Street today was a bit solemn and depressing.

Because the Federal Reserve issued an announcement yesterday, the Federal Reserve will make major policy adjustments this morning.

In fact, for those well-informed financial groups, they already know what policies the Fed will adjust.

For those familiar with the Fed's operations, the answer is not difficult to deduce.

After all, the Fed's policy adjustment is nothing more than raising interest rates or cutting interest rates and releasing funds. Given the current high inflation situation, it is obviously impossible to lower interest rates and release funds, so the only answer is to raise interest rates.

Therefore, today's press conference has not yet begun, and the entire Wall Street is already panicking.

For ordinary people, the Fed's interest rate hikes or cuts have little impact, and most people are even happy to see interest rate increases.

The reason is that raising interest rates by the Federal Reserve can not only increase the interest income from people's deposits, but can also effectively curb high inflation and reduce the cost of living.

But for financial institutions, once the Fed raises interest rates, it will be a cold winter or even a disaster.

After all, once deposit and loan interest rates increase, it will not only mean that their cost of using funds will increase significantly, but also more people will prefer to deposit their money in banks to earn interest instead of investing in the financial market.

There are too few leeks, so people who specialize in cutting leeks are naturally panicking!

All this bad news is reflected in the stock market and futures market.

As soon as the market opened today, the Nasdaq, Dow Jones, and futures markets all fell. The stock prices of most stocks were affected and fell, but the magnitude varied.

Everyone is not stupid. Now the Federal Reserve has completed two rounds of interest rate increases. Although the current benchmark interest rate is not particularly high, if it continues to increase, it will inevitably affect the prospects of the entire market.

In order to avoid losses or simply fear of being trapped, there are many people who want to withdraw.

It was in this chaotic and unfavorable situation that at ten o'clock, the Federal Reserve's press conference officially began.

Under the watchful eye of hundreds of media outlets, Federal Reserve Chairman Volcker said with a stern face: "The Federal Reserve System Board of Governors has decided to officially raise the federal funds rate from now on. The target range will be raised by 25 basis points to 5.75% to 6.0%." Between [-]%”

When Volcker's words were broadcast directly on television, all investors' remaining luck was instantly shattered.

However, what was even more unexpected was that when reporters at the scene asked Volcker as a routine question, "Will this be the last time the Fed raises interest rates?" Volcker's answer completely panicked the entire market.

“Because the domestic economy was resilient in the first half of the year and inflation was sticky, the Fed has not ruled out the possibility of raising interest rates at two consecutive meetings, and the earliest possible time to start raising interest rates again is January next year.”

As soon as this news came out, the entire Wall Street seemed to have been hit by a hurricane. All the major markets were in mourning. The Dow, S&P and Nasdaq all fell, and the decline was very large.

In fact, it is easy to understand. All investors come to the stock market for the same purpose, which is to make money.

But now that deposit interest rates are so high, why not invest in the stock market? It would be safer to deposit money directly in a bank.

There are fewer people playing, the entire market has shrunk, and all data will have to drop!

Of course, not everyone is crying and fainting in the toilet. There is a small group of people who are happier the worse the market is.

For example, Li Yi, another example is Reggie Green!

New York. Gold futures market!

In the luxurious VIP room, all the senior executives of Green Brothers were present. People who didn't know it thought that Green Brothers had moved its headquarters to the futures market.

At this time, the atmosphere in the room was still a bit tense.

Although the international gold price dropped by two dollars as soon as the market opened today, this drop has little impact on the entire market.

After all, in the past few days, not only did the international gold price not continue to fall, but due to the withdrawal of a large number of short-selling institutions, the price went against the trend and rose a lot, reaching US$378.

No one can guarantee whether gold prices will rise again in the next moment.At this moment, the door of the VIP room was pushed open.

Immediately afterwards, I saw George hurriedly walked in from the outside, and then said to Reggie Green and Li Yi excitedly: "Boss, the Federal Reserve has raised interest rates, and the international gold price has plummeted!"

As soon as these words came out, everyone in the whole room burst into loud cheers!

As employees of the company, everyone knows that they and the company are in the same boat, and they both prosper and suffer.

If the company's investment fails this time, Reggie Green and Li Yi, as the bosses, will certainly be unlucky, and they will not end well either.

It can range from a salary cut to a more serious one, the company will go bankrupt and they will have to find a new job.

Reggie Green was equally excited. He stood up and asked, "George, what is the international price of gold now?"

“$375 an ounce!”

Then George said again: "And someone in the market has already adjusted the price of the futures contract to US$36800 per lot!"

Hearing this, everyone cheered again.

Reggie Green couldn't suppress his excitement. He quickly came to Li Yi and said in a trembling voice: "Dear Li, our bet was right. We won."

Li Yi smiled and said: "Green, calm down. You are the president of the company. You have to keep a clear head on big things!"

"You're right, but I can't control myself."

"No, you have to calm down, because this is just the beginning. If nothing happens, the price of gold today is likely to drop to around US$320!"

"hiss!"

Hearing this, Reggie Green forced himself to calm down. He understood what Li Yi meant.

If the international gold price really drops to 320 US dollars, he must seriously consider whether to close the network and evacuate.

After all, the price is already low enough, almost bottoming out!

"Li, if the price of gold drops to US$320 per ounce, will you close the net?" Reggie Green asked in a deep voice.

"No!" Li Yi said decisively.

"That's 320 US dollars. Are you really not afraid of a rebound in gold prices?"

"I told you a few days ago that my psychological expectation is 270-300 US dollars. Unless the international gold price falls below 300 US dollars, I will not close the network!" Li Yi said.

"Li, you are really an investment lunatic!" Reggie Green said with emotion.

Having been in the investment world for so many years, Reggie Green has seen many crazy investors, but most of them became crazy after losing money.

But Li Yi is different. He is not the kind of gambling dog who loses like crazy. He is really crazy!
Li Yi smiled and said nothing!
He knew that his behavior seemed crazy to outsiders. It was completely a gambler's investment, and it was also a stud type.

But Li Yi himself doesn't think so. As he said to you before, not knowing the result is called gambling, knowing the result is called investment!

Now that he knows the result, what else does he have to worry about!

Anyway, he has decided to continue waiting. Now it depends on whether Reggie Green has the courage to follow.

Of course, if the international gold price really drops to 320 US dollars per ounce, Li Yi will not stop Reggie Green from following him and evacuating.

It is said that the master leads the door, and the practice depends on the individual.

He has already said this. If Reggie Green still doesn't have the courage to continue to follow, he can't blame others.
(End of this chapter)