Tonight, Old Bao's speech remains as neutral as expected. It raises the question, why does Old Bao always steer the conversation towards tariffs?

It raises the question, why does Old Bao always steer the conversation towards tariffs?

In fact, there is an easily overlooked issue behind this: the key means by which the Federal Reserve controls the market is through interest rate hikes and cuts, which adjust the overnight lending rates, while tariffs are directly ordered by the president.

Since the fourth round of quantitative easing post-pandemic has led to a significant rise in the market's inflation index, the Federal Reserve has carried out a series of interest rate hikes, making the decision-makers at the Federal Reserve extremely cautious about the interest rate base.

Trump had been frequently manipulating tariffs with the aim of forcing the Federal Reserve to cut rates to stimulate the market, but Old Bao did not take the bait and instead kept steering the issue towards tariffs.

It can be said that both sides have their own calculations, but it has been the global economy that suffers and is affected as a result.

It can be said that both sides have their own calculations, but it has been the global economy that suffers and is affected as a result.