$SUI , but next there is the Federal Reserve meeting, and the key still lies in Powell's attitude in his speech.
Now let's talk about our situation, there are several core data points:
First, the deficit rate is set at 4%. Previously, we mainly focused on 3, marking the first increase in the deficit rate in recent years. To clarify, this means the government is willing to take responsibility, which means they are willing to inject liquidity.
Second, the inflation data is set at 2%. It used to be 3, but now the monthly CPI is in the range of 0 point something, making the 3 target too distant.
This adjustment of the target is a positive development, indicating that the higher-ups have recognized the issues and are facing them head-on. This is a very significant positive.
Third, issuing 1.3 trillion in special government bonds, which is slightly less than the market expectations, but there is a point worth noting: this time they issued 500 billion to support state-owned large commercial banks to replenish their capital.
There are rumors about saving the banks, and this wave has come to fruition. Why do banks, which are making such large profits every day, still need to issue bonds? Because while banks are profitable, they also bear the huge burden of real estate. Saving the real estate market is too difficult, so it is better to preserve the banks as a backup.