The Federal Reserve (FED) has announced another 25 basis point rate cut, a seemingly mild move that contains many deep considerations behind it.

What impact might this interest rate cut have on the economy? On the surface, the financial markets are responding positively, with stock indices rising and gold prices climbing. However, whether this easing policy can truly address the fundamental issues of a weak real economy remains questionable.

The interest rate cut is essentially a signal from the central bank to the market to increase borrowing and consumption. However, when companies lack the willingness to expand and consumers are not willing to spend, it is indeed worrying whether monetary policy stimulus alone can create real demand.

This situation inevitably reminds people of the policy environment before the 2008 financial crisis—excessively loose monetary policy masked structural contradictions in the economy, ultimately leading to the bursting of the bubble.

The Federal Reserve (FED) is currently facing a dilemma: if it lowers interest rates too quickly and aggressively, it may threaten the global status of the US dollar; if it responds too slowly and conservatively, the risk of a hard landing for the economy will significantly increase.

A more thought-provoking question is: how will we respond to potential economic crises in the future once the monetary policy tools are exhausted? This not only concerns the wisdom of policymakers but also relates to the well-being of every market participant.

In this complex and ever-changing economic environment, it is particularly important to keep a close eye on market dynamics and seize investment opportunities.