The interest rate cut was supposed to be a positive development, so why did it drop again?

Buying 40 billion in bonds to inject liquidity into the market, is it effective?

An article will clarify this for you.

First of all, this interest rate cut has huge divergences, with a very rare chaotic voting and no consensus.

Three votes against it. One requested a larger cut, and two requested no cut at all.

The dot plot further amplified the contradictions.

Compared to the dot plot in September, one more person believes that interest rates should be raised in 2026, two fewer believe that rates should remain unchanged, two more believe that rates should be cut, four still believe in two cuts, three still believe in three cuts, one less believes in four cuts, and one believes there should be six cuts.

So, in order to balance.

To instill confidence in the market while maintaining internal stability, Powell said.

Alright, 3% as the benchmark, no plans to cut rates later, a hawkish stance.

Then, to stabilize the market, another 40 billion in bonds were bought, injecting liquidity.

Walking the tightrope aims to avoid falling.

So, will this 40 billion bring benefits? Why did it drop?

This is the market self-adjusting.

I have always emphasized that this is an emotional market, with no rules to speak of.

In the long term, it is definitely bullish, no doubt about it. But in the short term, overly optimistic expectations may actually hinder the rise.

Hang in there.

Everyone knows the terrifying reflexivity of the market.

At some panic point, spring may come again.