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黑暗中的沙漠

Opportunities for Immigrants to the U.S. from the Fed's Significant Cut Interest Rates

Powell

On 19 Sep 2024, the Federal Reserve announced a 50-basis-point interest rate cut, bringing the rates to a range of 4.75% to 5%. This marked the first rate cut since Mar 2022, following 11 consecutive rate hikes. Many officials predict further cuts in the next two months, with each cut expected to be at least 25 basis points. For those planning to immigrate to the U.S. What opportunities does this rate cut present?

 

1.Lower Immigration Costs

The Fed’s rate cut is accompanied by a weakening U.S. dollar, meaning immigrants to exchange less of their own currency for more dollars. Currently, the minimum investment for EB-5 investment immigration is US$800,000. The depreciation of the US dollar will reduce the financial pressure on immigrants, allowing them to save a lot of costs in the early stages of immigration.

 

2. Increased Real Estate Investment Opportunities

A rate cut often stimulates an increase in housing prices, especially in the U.S., where mortgage financing plays a critical role. The reduced interest rates mean that immigrants can obtain mortgages at lower costs when purchasing real estate.


Lower loan costs attract more buyers to the market, further pushing up housing prices. For investors, this provides an opportunity for greater capital appreciation returns.

 

3. Reduced Start-Up Costs

Interest rate cuts have lowered financing costs, making it easier for immigrants to obtain entrepreneurial loans from banks to purchase equipment, expand business, or develop new products. For first-time entrepreneurs, low rates significantly reduce financial burdens, making their business plans more feasible.


At the same time, the low-interest environment in the U.S. will attract more venture capital and angel investments into emerging businesses, providing more financial support for immigrants' business projects.

 

4.Increased Investment Market Potential

The rate cut boosts liquidity in capital markets, as a significant amount of money flows out of fixed-income assets and into higher-return stocks and other investment instruments.


After the interest rate cut, the capital market is relatively stable and risks are controllable, giving investors the opportunity to obtain higher returns in the stock market, bond market and commercial real estate.


Furthermore, increased liquidity makes capital turnover smoother, benefiting long-term investment projects.

 

5.EB-5 Visa are More Prominent

The Fed's rate cut further enhances the attractiveness of the EB-5 Immigrant Investor Program. There are no academic, language or business background requirements for this project. With a minimum investment of US$800,000, applicants can obtain a U.S. green card within one year at the earliest, with the option to include spouses and children under 21 in the application.


Especially after the introduction of the new EB-5 regulations, applicants can enjoy the rights to live, work & have their children attend school in the U.S. during the visa approval process.

 

6.Conclusion

The Federal Reserve’s interest rate cuts inject new vitality into the global economy. For those planning to immigrate to the U.S., these cuts not only reduce immigration costs but also offer more investment and entrepreneurial opportunities.


If you are considering obtaining a U.S. green card through investment or would like to know other immigration methods, please contact Oceanus Strategic. We will publish more interesting articles in the future, so stay tuned.

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