🔥🔥The Federal Reserve's interest rate cut and the Bank of Japan's interest rate hike may seem like opposing actions, but in reality, they represent a precise coordination of 'global liquidity balance techniques'.
This is not a coincidence, but rather a joint effort by the two major central banks to hedge against the risks of global excess capital.
The core of the Federal Reserve's interest rate cut is to stimulate employment and the real economy, rather than to make stock investors wealthy. The rate cut will inevitably push up asset prices in the short term, triggering a market 'frenzy', but its true intention is to repair domestic demand and credit circulation.
Meanwhile, the Bank of Japan's choice to raise interest rates appears to be aimed at responding to inflation and supporting the yen, but in essence, it acts as a 'global liquidity gate'.
When the Federal Reserve turns on the 'tap' to release dollar liquidity, Japan restricts arbitrage opportunities by 'turning off the tap', reducing the reckless movement of hot money among global risk assets.
This combination of 'loosening and tightening' focuses on preventing bubbles and imbalances. It allows for orderly movement of global capital while avoiding the complete loss of control over asset prices that would result from both 'taps being turned on' at the same time.
Behind this is a tacit collaboration among global central banks—stabilizing through hedging and maintaining order through differences in rhythm.
The brilliance of macroeconomic control lies not in who expands or contracts, but in how to maintain dynamic balance in the financial system amidst fluctuations.
