The Importance of the Fed

The United States government has never defaulted, right? Yeah. And this goes all the way back to Alexander Hamilton. So as a result of that, the American 30-year bond rate is regarded as the long-term risk-free rate. Every single investment has to be discounted by the American long-term bond rate in order to see whether or not your investment is real or not. That's why the Fed is so important. Because if it changes interest rates, it adjusts the long- term risk- free rate of investment. Therefore, every asset in the world has to readjust up or down based on it.