#FedRateCutAffectsDollarTrend Fed rate cuts significantly impact small business investment and growth, which indirectly influences the dollar. Lower interest rates reduce borrowing costs for small businesses, making loans more affordable and accessible. This encourages investment in expansion, equipment, and new ventures, stimulating economic activity. As small businesses grow, they create jobs and contribute to overall economic health. A thriving small business sector can boost investor confidence in the U.S. economy, attracting both domestic and foreign capital. Increased demand for U.S. assets strengthens the dollar. However, if rate cuts lead to excessive risk-taking or inflation, it could destabilize the economy, potentially weakening the dollar.