Last night, the dust settled—cutting interest rates by 25 basis points, and there's no real surprise about this. What's truly worth watching are the subsequent actions: in the next month, the Federal Reserve plans to inject $40 billion into the Treasury market!

In simple terms, it's about flooding the banking system with money to ensure the market isn't short on funds. Jerome Powell's move here is quite bold—he says that interest rates might stay the same, be cut slightly, or be cut significantly, leaving plenty of room for interpretation. Then he leaked that recent months' employment data has been somewhat inflated—overstated by 60,000 jobs.

What is he subtly implying? The employment market is weakening, and signs of an economic recession are emerging. He also emphasized explicitly, "No rate hikes? Don't even think about it," making his stance very clear.

Regarding inflation targets, Powell's statements are also quite interesting: "We will bring the 2% inflation target under control. The main reason we haven't hit it yet is due to tariff policies." The implied message is—technically, I have the situation under control, but the blame lies with the President. My current rate cuts are to prevent an economic collapse.😏

Overall, this FOMC meeting is about balancing: on the surface, using a hawkish stance of 'pause rate cuts' to stabilize inflation expectations, while secretly injecting liquidity into the market through RMP (Reserve Management Purchase) — an invisible form of QE. On one hand, holding a bowl to fight inflation, on the other, holding a spoon to stabilize the market, avoiding offending either side.