#AITradingAffectsForex The Federal Reserve's interest rate decisions significantly impact AI-driven trading strategies, particularly in areas like algorithmic trading, quantitative investing, and high-frequency trading (HFT). Here’s how: 1. Market Volatility Fed rate hikes or cuts often cause sharp market reactions, which AI trading algorithms capitalize on. AI models trained on historical data can predict and react to interest rate movements faster than human traders. 2. Bond & Equity Market Impact Higher rates generally lead to lower stock prices and higher bond yields, influencing AI-based portfolio rebalancing. AI trading systems adjust exposure to interest-rate-sensitive sectors (e.g., financials, real estate, and tech).