The Federal Reserve suddenly hits the "brake on tapering"! With $38 trillion in debt, a major policy shift is underway, and the market faces a life-and-death test🚨

The Federal Reserve has made a surprising move: starting December 1, it will officially suspend tapering! This action, which has lasted more than three years, reducing from $9 trillion to $6.6 trillion, has come to an abrupt halt, not as a temporary decision, but rather hiding three key signals.

At the core is the dual demand of "emergency relief + debt protection"💸: on one hand, the downward pressure on the U.S. economy is evident, the job market is weak, and a decline in bank reserves has triggered liquidity alarms, with further tapering potentially triggering financial risks; on the other hand, the $38 trillion in national debt is overwhelming, net interest expenses are nearing defense spending, and continued sales of U.S. Treasuries would drive up government financing costs, forcing the Federal Reserve to abandon "inflation control first" and shift towards maintaining debt stability.

More challenging is the dilemma🧩: inflation remains stuck at a high level of 2.8%-3.0%, yet there is a need to "ease" for a weak economy and high debt, with policy independence deeply bound by fiscal pressure. This shift has directly caused market turbulence—mainstream cryptocurrencies plummeted over 4% in a single day, and U.S. stocks became more volatile, essentially reflecting investors' entanglement between "liquidity easing" and "policy credibility loss".

For the global market, it's a mixed bag: short-term liquidity tensions are easing, and hot money pressure has somewhat released; however, long-term risks remain, as the Federal Reserve's assets are still $2 trillion larger than before the pandemic, combined with an unclear path for rate cuts in December and delayed economic data releases, potential chaos from hot money could spark new bubbles. More crucially, this marks the countdown to a wave of rate cuts in 2025-2026, with the period of policy easing just around the corner.

In fact, the Federal Reserve's "brake" is merely a short-term easing to cover up long-term structural contradictions. For investors, rather than betting on one-sided trends, it’s better to focus on risk hedging—after all, at the crossroads of a major shift in global monetary policy, what enables one to navigate volatility is not luck but a clear understanding of trends and robust planning. This policy game has just begun, are you ready? $ZEC #加密市场反弹 $ETH #美联储重启降息步伐 $GIGGLE