Recently, an interesting phenomenon has emerged in the US economic data. The GDP growth rate for the third quarter came in at 4.2%, which is far higher than the previous market expectation of 2.5%. Normally, this would be considered Favourable Information — but what happened? The stock market reacted quite lukewarmly, and even dipped a bit.

This actually reflects a long-standing market dilemma: whenever economic data is positive, Wall Street starts to worry that the Federal Reserve will follow up with interest rate hikes to curb inflation, which in turn becomes a factor that depresses the stock market. Good news turns into bad news, and this reversal logic indeed distorts the market pricing mechanism.

In this regard, the recent views of the U.S. leadership are very straightforward: a strong economy itself will not necessarily trigger inflation; the key lies in policy direction. If the Federal Reserve actively raises interest rates when the market is performing well, it is equivalent to artificially suppressing the upward momentum. If this continues, the market will never be able to return to that normal state of "rising when it rises and falling when it falls"—the kind of market that once existed and should exist.

From a policy perspective, if inflationary pressures can naturally ease, there is no need to rush to raise interest rates as a precaution. Moderate interest rate hikes can be considered if necessary, but they should never be implemented solely to suppress rising prices, as this would only hinder the normal growth cycle of the economy. What the market needs is a rational policy environment, not an excessively intervened market.