The Federal Reserve announced a rate cut and launched RMP, but the market did not rise and instead fell. This is mainly because it is not the traditional "flooding" type of quantitative easing (QE), and the market had already digested some expectations while feeling concerned about the future easing path.

Next, a detailed interpretation section:

1. Nature of the policy: RMP ≠ QE. The core goal of RMP is to maintain sufficient reserves in the banking system and ensure short-term interest rate stability. It is likened to "controlling the flow of the faucet to ensure the pool does not dry up," while QE is "flooding" to strongly stimulate the economy. Therefore, the liquidity support brought by RMP is relatively limited.

2. Expectations have been overdrawn in advance; the capital market trades on "expectations." Before this meeting, the market had fully anticipated "rate cuts + balance sheet expansion," and some funds had already positioned themselves and pushed up asset prices. When the good news was officially announced, a classic "buy the expectation, sell the fact" profit-taking operation occurred.

3. "Hawkish rate cut" signal: Although the rate cut itself is an easing measure, the dot plot released by the Federal Reserve shows that officials' expectations for rate cuts in 2026 are very conservative (the median is only once), and internal disagreements have reached a near-record high. This has been interpreted by the market as a "hawkish rate cut," meaning that the future easing path will be very slow and uncertain.

4. External risks form a hedge: Concerns about the AI bubble: Poor earnings reports from AI concept stocks like Oracle have raised market concerns about the overvaluation of tech stocks. Other central banks tightening: The market is simultaneously trading on expectations that the Bank of Japan, the European Central Bank, and others may exit easing policies, partially offsetting the global liquidity improvement expectations brought by the Federal Reserve's rate cut.

In summary:

The market's tepid response is the result of multiple overlapping factors: the limited strength of RMP itself, the good news having already been digested by the market, and the Federal Reserve's "hawkish" guidance on future policies and external risks dampening optimistic sentiment. This reminds us that when analyzing monetary policy, we cannot only look at a single action (such as a rate cut) but must also gain insight into the specific nature of the policy, the market's prior expectations, and the signals sent by decision-makers about the future.