The Impact of the Fed’s Interest Rate Cut on Singapore’s Economy

Xianzhe Lin ()
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Xianzhe Lin: Singapore Institute of Management

A chapter in Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025), 2025, pp 1066-1075 from Springer

Abstract: Abstract The Federal Reserve Board of the United States declared on September 18, 2024, that this paper would reduce the federal funds rate’s target range by 50 basis points. This decision has a significant impact and has attracted global attention. This paper makes regression analysis and trend analysis on the period data by using R language and investigates the influence of the interest rate cut by the Federal Reserve on the exchange rate between Singapore and the US dollar, the total import value and the average overnight rate. The results show that Singapore’s total imports and average overnight rate are significantly affected by the federal funds rate, but there is no obvious relationship between the federal funds rate and the exchange rates of US dollars and Singapore dollars.By examining the findings of earlier research, this paper discovered that exchange rate fluctuations can be influenced by a variety of factors, including global capital flows and Singapore’s economic conditions, in addition to shifts in the federal funds rate.

Keywords: Federal Reserve; Singapore Economy; Federal Funds Rate (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-748-9_115

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DOI: 10.2991/978-94-6463-748-9_115

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