(1) There is short-term stimulus from rate cuts, but no long-term stimulus

Don’t be naive to think that rate cuts can release liquidity. The purpose of rate cuts is to restore the currency M2 before the epidemic, not to restore the M2 before the rate cut. Otherwise, the Fed will be lonely. The total supply of US dollars will be reduced.

(2) Don’t believe that the market will become active immediately after the rate cuts in September

During the election, the Fed will try to avoid financial policies that interfere with the election results. The change in market trend will have to wait until after the election.