Crypto effected by interest rates learn how

So the official inflation numbers had been revealed, and it's not looking good inflation surged to nine point, one percent in june, the most since november of nineteen eighty one this is the highest in over forty years in in response, the stock market is read, the crypto market is red because of what is to come, because inflation is out of control. We have seen the federal reserve to raise interest rates, and last month in june, they raised interest rates by seventy five basis points. This is the biggest increase since nineteen ninety four, and it's likely only going to continue the federal reserve- is likely to increase interest rates again pasta glee by another. Seventy five basis points because inflation is out of control. But what does this really mean? You've probably heard about raising interest rates and what it means for the future of stocks in crypto and your investments, and you don't completely understand that. Let me break it down for you so because inflation is so high federal reserve increases interest rates. Why do they do that? When they increase interest rates, it makes it more expensive to borrow money, and if less people are borrowing money, they are spending less on the economy. Think about it. Our economy runs on credit and interest. When we buy cars, maybe for thirty or forty thousand dollars, we don't buy it all at once. We buy it with a loan or when we take out a mortgage for a house, for example, we're not buying everything at once, we're buying it with a loan, but when interest rates are increased, it makes it more expensive for us to borrow money. So if less people are borrowing money, this means less people are spending on the economy. So if less people are spending money on products, it lowers the men, so companies and businesses are forced to lower the prices of their products, but it doesn't always work. It's not that simple. Also, when raising interest rates, a federal there has to be very careful how aggressive they are if they raise it too, high too fast. This could lead to higher unemployment. If businesses have to lay off workers- or maybe they raise it too fast, too high and it just totally holds and kill the economy. So it's not a simple thing to do, and you're are probably feeling inflation yourself, groceries up: twelve percent in the past year, the biggest annual increase since nineteen seventy nine chicken of nineteen percent. In the past year, the biggest increase ever get up, sixty percent biggest since nineteen eighty one electricity, a fourteen percent biggest since two thousand, and six and rent up by five point, eight percent biggest since nineteen. Eighty six things are expensive right. It's very hard for us right now to afford things, but that's the whole point. The whole point is to make things unaffordable so that we don't actually go out and buy it and if we're not going out and buying it and the men lowers.