The recent trend in the BTC ETH BNB market is hiding the Fed's magical operations.

Powell is someone who puts on a good show – during the press conference, he firmly stated that there is no rush to cut interest rates, and that there is no hope for December. But then he turned around and did something even more explosive: he officially announced the halt of balance sheet reduction. This move is quite brilliant; while claiming not to provide any sweeteners, he has already cracked open the valve of liquidity a bit.

**Bauer's Strategy of Two-Hand Preparation**

On the table: maintaining a tough stance, the phrase "patiently observing" is repeatedly emphasized, interest rate cuts? Not a chance.
Under the table: Quantitative tightening hits the brakes, no longer tightening the balance sheet from December. Those who understand know that this is equivalent to indirectly injecting liquidity into the market.

**Trump's side is in chaos**

Old Trump is really anxious this time. He bombarded Powell in succession with "should resign" and even gave him the nickname "Mr. Too Late." What's harsher is that he directly stated that if he gets back on stage, the first thing he will do is deal with the Fed, and the alternative chairman list is said to be already drafted.

Will Powell really step down early? Although his term theoretically lasts until 2026, there are whispers in Washington that he is considering leaving. True or false, the market has already been sufficiently shaken by this news—U.S. stocks, bonds, and the dollar have all been fluctuating, and traders' heart rates are more exciting than candlestick charts.

**What does stopping the taper mean?**

Former New York Fed officials have long pointed out that continuing to reduce the balance sheet cannot pave the way for interest rate cuts. Now liquidity has tightened to a critical point, and further pressure on the market would be unbearable. So Powell's move is actually quite clever—on the surface, he maintains a tough persona by not cutting rates, while secretly addressing the liquidity crisis.

**What about looking ahead?**

The toughest times are likely to be over. We still have to wait for the policy window for interest rate cuts, but the signal of stopping the balance sheet reduction has already been sent out. Many institutions have quietly started to adjust their positions, just waiting for the next round of market movement to begin.

Of course, the market is always full of uncertainties. The policy game is still ongoing, and the drama between Trump and Powell is likely to have several more episodes. In investing, understanding the direction is more important than chasing hot trends.