December 1st, a day worth remembering.

The Federal Reserve has pressed the pause button - QT (Quantitative Tightening) is officially on hold. The money printing machine that was running rampant during the pandemic has finally come to a halt.

But the question arises: inflation is still above 3%, and the economic data on the surface hasn't collapsed, so why is there a sudden brake now?

**Because the Federal Reserve has little room to maneuver.**

Continue to tighten? The economy may come to a complete halt.
Let your guard down? Prices are about to spiral out of control.
In a dilemma, I might as well stop and observe.

There is also a political account hidden in this - if the Federal Reserve continues to madly sell government bonds, the cost of issuing bonds by the Treasury will skyrocket. Now pausing can be seen as leaving a way out for fiscal policy.

**How does the market look in the short term?**

It's a small positive sign. The most strained phase of liquidity has passed, and risk assets can breathe a little easier. But don't rush to celebrate— the Federal Reserve's balance sheet size is still nearly $2 trillion higher than before the pandemic, so the water level hasn't really dropped much.

What is even more bizarre is that some key economic data was "delayed in release" in October, coinciding with a policy silence period, creating a vacuum of market information. In recent days, cryptocurrencies and U.S. stocks have been fluctuating wildly, which is closely related to this.

**In simple terms:**

The Federal Reserve has sensed the smell of economic downturn and has started to prepare in advance. Whether it will actually shift to easing still depends on the upcoming inflation and employment data. But one thing is certain - the hardline stance of "raising interest rates at all costs" has begun to loosen.

The liquidity inflection point is emerging; which assets are worth paying attention to?

The answer is clear: high growth potential, real application scenarios, and assets that represent future trends.