—Limited impact, infinite details.

The Federal Reserve lowered interest rates by 25 basis points as expected, but it still brought a slight shock to the world—lowering interest rates is just a superficial action; what truly makes the market nervous is the pile of 'dark lines' behind it.

One good news (more money) diluted three bad news (widening differences, fewer future rate cuts, strong political pressure):

The first (good news) that surprised the market this time is the 'interest rate decision statement,' announcing the 'purchase of short-term government bonds' (which will buy about $40 billion of short-term bonds each month).

Although the Federal Reserve is trying to cover up, claiming this is not 'QE,' the market understood: the water is coming. History has proven that 'not QE' eventually turns into QE. Subsequently, the 'QE trade' was fully initiated: U.S. stocks rose across the board, U.S. government bonds surged (yields plummeted), gold stood above $4,200, and Bitcoin surged back to $94,000.

Second (bad news), there were three dissenting votes, the first time since 2019, and the internal rift is large enough to be unmasked.

Board member Milan: Advocating for a 50 basis point rate cut.

Chicago Fed President Goolsbee and Kansas City Fed President George: Advocating to keep interest rates unchanged.

There is a very clear rift emerging within the Federal Reserve. And the rift is not simply 'doves vs hawks', but rather 'completely different judgments about the future economy'. On one side, inflation is stubborn, and no cuts can be made; on the other side, employment is weakening, and cuts need to be made quickly. The lack of consensus on policy means that every piece of data going forward will trigger officials to take sides, and volatility will be much greater than in the past two years.

Powell said a very critical statement: 'This is a rare situation where our dual goals are in conflict.' This statement is sufficient to be included in textbooks.

Third (bad news), the signals from the dot plot are inconsistent with market expectations. The market originally expected at least two rate cuts in 2026, but the dot plot shows only one more cut in 2026 and just one in 2027.

Fourth (bad news), no hints were given for future rate cuts.

Powell stated that the interest rate policy is in a good position and can wait to observe how the economy evolves. Monetary policy is not on a predefined path, and decisions will be made based on each meeting's circumstances. Although Powell's tone is not hawkish, it remains cautious overall.

The Federal Reserve has lowered interest rates, but not because of victory, rather out of fear.

The market has risen, but not due to rate cuts, but rather liquidity.

Trump gave his opinion after the Federal Reserve cut rates by 25 basis points: It could have doubled, at least doubled.#美联储重启降息步伐 #加密市场反弹 $BTC