Strategists warn that Walsh's "rate cut declaration" hides traps, with the cost potentially being a global liquidity contraction

According to Jinshi News, Damian Boey, portfolio strategist at Wilson Asset Management, stated that Waller tends to favor lowering interest rates but hopes the Federal Reserve will reduce the size of its balance sheet to achieve rate cuts.

The market is reacting by contemplating what the world will look like if the Federal Reserve's balance sheet shrinks. Once discussions about withdrawing support begin, assets such as gold, cryptocurrencies, and bonds will be sold off.