Report by Lea Fayad, English adaptation by Nadine Sassine As the U.S. elections, held in the world’s largest economy, capture global attention, the Federal Reserve is also in the spotlight, guiding the world’s most powerful currency and shaping its policies. For the first time in nearly four years, the Fed has lowered interest rates from 5.5% to a maximum of 5%. This decision follows years of rising prices and high inflation in the U.S., largely driven by the COVID-19 crisis and subsequent supply chain disruptions, which prompted the Fed to raise interest rates to encourage savings and curb demand. While this strategy helped reduce inflation, it also slowed business activity, led to fewer new projects, and increased unemployment, raising concerns about a potential recession. The Fed announced its first rate cut, and the big beneficiaries are those with loans or seeking loans—whether for housing, cars, or credit cards—as their monthly payments will now be lower. This effect is not limited to U.S. borrowers. Many countries worldwide, which follow the Federal Reserve’s lead, will also see benefits. If Lebanon’s banking system were still stable, it too would experience lower interest rates due to its ties to the U.S. dollar, and Lebanese borrowers would benefit as well. Countries with dollar-denominated debt also stand to gain, as they’ll repay loans with lower interest. Emerging economies such as India, Brazil, and South Africa may become more attractive to investors seeking alternatives to the U.S., given that interest rates in these regions are higher. The metals sector, particularly gold, is another big winner, as investing in gold becomes more appealing than leaving money in the bank. However, deposit holders may lose out, as they will earn less interest on their savings. Still, the biggest potential loser could be Donald Trump, the Republican presidential candidate, who views the rate cut as a political move favoring Democrats, arguing it creates a positive public perception—especially for those with loans—just before the election.