Why does everyone say that the Federal Reserve's interest rate cuts are good for the U.S. stock market and crypto, creating a bull market?
Simply put, the Federal Reserve cutting interest rates is like turning on a faucet; money flows into the stock market and the crypto space, while raising rates is like turning off the faucet, with money returning to banks. However, if the U.S. raises interest rates while aggressively issuing government bonds, it becomes a 'simultaneous operation of injecting and withdrawing liquidity,' resulting in a situation where there is still plenty of money and stocks rise. To put it plainly, it’s about wanting to harvest globally without hurting oneself!👊
