How will the lower interest rates in the US lower the returns on US investments affecting foreign investment?

Question

My question came as a result of a question I asked previously which was why the Us dollar's value would loose value to the Euro as a result of the Fed's interest cut...

Thanks e/one for answering and helping me escape from economic ignorance!!!

Answer 1

Of the financial assets in the US about half are interest barring bonds and their return declines with the decrease in rates. Also as investors adjust their holding in response to new rates, stock prices rise which has the effect of reducing their future rate of return.