In fact, the so-called provision and withdrawal of dollar liquidity, from my personal perspective, is nothing more than:

1. Liquidity provision = The Federal Reserve lends money to the market

2. Liquidity withdrawal = The Federal Reserve borrows money from the market

The interest rate for this borrowing is controlled by the Federal Reserve, which completes the entire system of dollar liquidity provision and withdrawal. Therefore:

1. The so-called liquidity easing is simply: The money the Federal Reserve lends to you is cheap and in large quantities.

2. The so-called liquidity shortage is simply: The Federal Reserve is willing to pay a higher cost to borrow money from the market and in large quantities.

The Federal Reserve and the market have a counterparty relationship, with the distinction that the Federal Reserve is policy-driven, not profit-driven, and the former has a stronger influence. However, at times, the Federal Reserve may also yield to the market, otherwise everyone would be in trouble together.

3. The diagram below basically covers the main characteristics and structure of the Federal Reserve's interest rate control and the provision of liquidity to the market from the liability side.