Seeing this news, many traders' first reaction is to breathe a sigh of relief: "The rate cuts are here, risk assets are about to take off."

But if you interpret it that way, you're really only seeing the surface.

The key isn't in the words "rate cut," but in what this new leader actually wants. What he desires is not just easing monetary policy; he wants to—regain control over the Federal Reserve's influence.

**1. First, the conclusion: this guy is neither dovish nor hawkish**

He is a **Maintainer of Order**.

Let's see what he supports:

✔️ Rate cuts (but not for market rescue)
✔️ Continuing to shrink the balance sheet
✔️ Limiting the impact of fiscal policy on monetary policy
✔️ Bringing inflation back to a "manageable level," rather than "out-of-control consequences"

Simply put: money can be cheaper, but the entire system must be more regulated.

**2. Why does it seem counterintuitive that rate cuts and balance sheet reduction happen simultaneously, making the market uneasy?**

This indeed defies intuition—

If rates are being cut, why are they still shrinking the balance sheet?

This is the core idea.

Within his framework:

Interest rates are a price adjustment tool

The balance sheet is a power tool

Over the past decade, the real problem with the Federal Reserve wasn't how high interest rates were set, but that—

👉️ It turned the balance sheet into a daily policy tool.

What he now wants to do is reverse this situation.

**3. Why is the phrase "Inflation is a choice" so harsh?**

On the surface, it sounds like an academic debate, but in the internal system of central banks, it essentially means—

Inflation is not a natural disaster; it is the result of the central bank’s policy choices.

This is a very serious accusation.