TokenEconomist
What is the true story behind the Fed's "words and actions"?
Recently, the Fed's operations have left many people a bit confused. On one hand, they announced a 25 basis point rate cut, presenting the stance of an "inflation fighter"; on the other hand, they secretly injected nearly $40 billion into the financial system through standing repurchase facilities (SRF) and other liquidity tools. It's like an ex saying goodbye while still ordering your favorite late-night takeout—actions speak louder than words.
Unpacking this operational logic isn't complicated:
On the surface, the Fed maintains the
View OriginalRecently, the Fed's operations have left many people a bit confused. On one hand, they announced a 25 basis point rate cut, presenting the stance of an "inflation fighter"; on the other hand, they secretly injected nearly $40 billion into the financial system through standing repurchase facilities (SRF) and other liquidity tools. It's like an ex saying goodbye while still ordering your favorite late-night takeout—actions speak louder than words.
Unpacking this operational logic isn't complicated:
On the surface, the Fed maintains the