Recently, there has been news that looks like a political mudslinging battle, but it may actually be a key signal of a major cycle turning point.

During a CNBC program, U.S. Secretary of Commerce Howard Lutnick challenged Powell, and what is truly worth noting is not the firepower but the statement he made: "Economic growth during Trump's term could reach 6%."

This is not just a casual remark. Those in the know understand that this is high-level signaling of a rate cut cycle "warming up."

**Fiscal and monetary camps finally tearing each other apart**

The Commerce Department manages economic growth, while the Federal Reserve focuses on monetary stability. These two have never been on good terms:

Fiscal side: Call for rate cuts! Get the economy moving! Boost consumption!
Fed: Raise interest rates! Control inflation! Keep the financial system stable!

Now, the fiscal camp is directly firing:
"Powell is too conservative, unable to handle a 30 trillion dollar economy."
"Interest rates must be lowered."

What does this indicate? It shows that the U.S. fiscal system can no longer bear high interest rates. The pressure to cut rates has spread from the financial sector to the decision-making level, and monetary easing is beginning to become a political task.

When was the last time similar signals appeared? In 2008 and 2020. Everyone knows what happened after those two instances — a super cycle in asset prices.

**"4% GDP is already good enough" — this is a reason for rate cuts**

Under normal circumstances, good economic data wouldn’t be used as an excuse to cut rates early. But the Secretary of Commerce now emphasizes "4% is very good," implying: don’t use "economic overheating" as an excuse to delay rate cuts.

This kind of preemptive momentum-building often signals that the window for policy shifts is approaching. The public confrontation between the monetary and fiscal camps itself is a typical sign of an approaching liquidity turning point.

The market has already priced in this expectation. Whether it’s traditional assets or risk assets, sensitivity to the rate cut cycle is rapidly increasing. Historical experience tells us that when policy signals shift from hints to open debate, it’s often when the window for layout begins to narrow.