Recently, legendary investor Warren Buffett expressed concerns about the U.S. government's fiscal deficit and the worry that the U.S. unlimited quantitative easing policy might lead to a long-term decline in the dollar's credit. This viewpoint has sparked widespread discussion in the market regarding the Fed's monetary policy.

Analyzing the current economic situation, the Fed seems to have no sufficient reason to hastily cut interest rates. First, the overall performance of the U.S. economy has not shown significant signs of deterioration. Second, the U.S. stock market remains relatively stable. However, it is worth noting that the U.S. is indeed facing inflationary pressures, with the core PCE index reaching 3.1%, above the Fed's target level of 2%. In the future, the impact of tariff policies may further exacerbate inflationary pressures.

If the Fed chooses to cut interest rates, it may trigger a series of chain reactions. Funds are likely to flow more into the US stock market rather than other investment channels. At the same time, the rate cut may also stimulate capital outflow to other countries. Buffett's recent investment moves in the Japanese stock market may be a foresight of this trend.

However, some investors seem to be overly optimistic. Just because a publicly listed company raised hundreds of millions of dollars to establish a cryptocurrency reserve does not mean that blindly being bullish on the market is warranted; this behavior is worth being cautious about.

Overall, in the current complex economic environment, investors need to remain rational and comprehensively consider various factors, rather than blindly following short-term market fluctuations or single events. The Fed's policy decisions will greatly influence the future direction of the economy, which is worth our ongoing attention.