WHAT IS FED RATE CUT

When the Fed cuts interest rates, it stimulates economic activity by making borrowing cheaper. 
This encourages people, businesses, and the government to take out loans (e.g., personal loans, mortgages, etc.).

As borrowing increases, more money flows into the economy. 
While this boosts spending and economic growth in the short term, it can lead to higher inflation if too much money is circulating relative to the supply of goods and services.

To counter rising inflation, the Fed may eventually have to raise interest rates again, which can slow economic activity and sometimes trigger a market downturn or crash.

During periods of high inflation, investors like Warren Buffett and VCs often protect their wealth by holding cash or investing in inflation-resistant assets (e.g., real estate, gold, or TIPS) to preserve value while avoiding risky assets like equities during volatile times.

Young_Crypto 💎

@maxlapi