The decision to cut interest rates mean the Fed will pump more money into the economy. A portion of the money will flow into stock, the rest will pour into the consumer and make inflation becomes aggravated. In this case, the Fed has exchanged the stock markets with the ability to accept high inflation. The Fed cannot achieve two objectives at once because they contradict each other. Because of the fear of inflation, as well as the long-term impact on suspicion of falling interest rates, measures should the European Central Bank (ECB) was not in response to the Fed's action. Seems to have a similar stories are happening in Vietnam, stock indexes are dropped and inflation are at a very high level. Someone said that the State Bank of Vietnam should also have steps like the Fed did. Whether this is feasible?
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