Yesterday early morning, the Federal Reserve finally took action, cutting interest rates by 25 basis points. The market had anticipated this move. However, the matter is not over yet—some former president has come out swinging again.

He is quite dissatisfied with the current Fed Chair and directly criticized him publicly: 25 basis points? That’s not nearly enough! To bring the US economy back to its peak, the rate cut needs to be at least doubled. The implication is clear: the current policy stance is actually holding back economic growth.

He also added: the stock market must continue to rise, and cryptocurrencies must also go up—that’s the right path.

Honestly, this kind of stance is quite in line with his usual style. The amount of rate cut, market liquidity, and the trend of risk assets are indeed interconnected. But the game between policy-making and market expectations has never been so simple. Whether 25 basis points is enough will likely depend on subsequent economic data.

On the crypto side, investors are currently most concerned about liquidity expectations. Will the rate cut lead to a new wave of capital inflows? This question is probably hard to answer in the short term.