Federal Reserve Interest Rate Cuts: A 'Firefighting' or 'Playing with Fire'?
Oh dear, the Federal Reserve has cut interest rates again! This time by 25 basis points, seemingly a gentle cut, but in reality, there are undercurrents!
Do they really think that printing money can solve the economic weakness? The stock market is ecstatic, gold is dancing, but have ordinary people's salaries increased? Has the pressure of mortgage payments eased? This is just like covering a feverish patient with a thick quilt—warm on the surface, but the internal fire is even stronger!
The essence of cutting interest rates is to 'beg' the market: borrow money quickly, consume quickly! But companies are not expanding production, and the public is holding on to their wallets. Can real demand be created just by the roaring printing press?
What's even more frightening is that this operation resembles the script before the 2008 financial crisis—using loose policies to cover structural contradictions, and in the end, it's still the workers who pay the price?
Ultimately, the Federal Reserve is walking a tightrope: cut rates too aggressively, and the status of the dollar is at risk; be too stingy, and the risk of a hard landing for the economy skyrockets.
This is not saving the market; it is clearly a gamble!
Let me ask: when the ammunition of monetary policy runs out, who will pay for the next crisis?
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