#FedRateCutAffectsDollarTrend Fed rate cuts influence market sentiment, shifting between risk-on and risk-off dynamics. In a risk-on environment, lower rates encourage investors to seek higher-yielding assets like stocks and emerging markets, boosting equities. However, if rate cuts signal economic distress, risk-off sentiment prevails, driving investors toward safe-haven assets like bonds, gold, and the U.S. dollar. The extent of this shift depends on economic data, inflation trends, and global market stability. Ultimately, whether markets embrace risk or seek safety after a Fed rate cut hinges on investor confidence and macroeconomic conditions.