On Wednesday, the Federal Reserve cut interest rates again, lowering the benchmark rate by 25 basis points to the 3.5%-3.75% range — this is the third consecutive rate cut, with the rate hitting a more than three-year low.

However, the decision process this time was not smooth. There was a clear divide within the Federal Reserve: the majority supported the rate cut to stabilize the labor market, but a few key officials publicly expressed opposition, arguing that priority should now be given to addressing the persistently high cost of living.

This policy tug-of-war is actually quite subtle — on one hand, stimulating the economy and maintaining employment, and on the other, suppressing inflation. For the market, a prolonged easing environment means improved liquidity, but if inflation rebounds, subsequent policies could turn sharply.