After all, with tighter regulation and tight capital, high interest rates and high limits mean high risk, but investors should also be careful not to put money in one basket. 6. The gasoline tubing in the engine room ruptured On the other hand, if investors think that inflation will worsen or worsen, interest rates may rise to curb inflation, and bond prices will fall. First half of the 1980 s, the United States there is a lot of huge budget deficit and trade deficit, the dollar remains strong, is the United States adopted a policy of high interest rates, which makes a lot of capital from Japan and Western Europe into the results of the United States. The trend of the dollar has been greatly influenced by interest rate factors. Interest rate decision theory