The Federal Reserve paused interest rate hikes in September, so why do many people feel even more anxious?

How can the Federal Reserve's hawks be so formidable? Can they really challenge everything? What impact does this have on our finance and economy?

The Federal Reserve's interest rate hikes have long ceased to be a secret, but there are still some puzzling aspects.

There are two key issues here: first, what exactly do the hawks at the Federal Reserve do, and why do we always feel there are so many of them? Second, what is the impact of the dollar's long-term high interest rates on our rate cuts and economy?

Additionally, some people ask why we seem so confident and unaffected by the high interest rates of the dollar. What leverage do we have?

These two sets of questions are not only crucial but also closely related to us. Only by knowing the answers can we feel less nervous and anxious.

We observe that in September, the Federal Reserve did not raise interest rates but instead sent out a stronger hawkish signal. They were very resolute; not raising rates in September does not mean they won't raise them this year, nor does it mean they won't raise them next year. Even if they don't raise rates next year, it is very necessary for the dollar to maintain long-term high interest rates.

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A reporter asked Federal Reserve Chairman Powell why this was the case, but he was evasive and could not explain clearly. He used many very vague terms like "possible" and "cautious" in his speech. Some people counted that he mentioned "cautious" more than ten times, which is very rare and unconventional.

Therefore, some experts criticized Powell, saying that he is a legal expert and does not understand currency or economics at all. Whether he understands or not, we don't know, but the Federal Reserve has many high-level experts who can explain it to him clearly, so Powell is not unable to explain, but rather unwilling to explain.

So the question remains, why are there so many hawks at the Federal Reserve? What do they really want to do?In fact, it's not that there are many hawks in the Federal Reserve, but rather that the hawks are vocal and represent political correctness. What they say cannot be refuted by others.

There are two deeper reasons why there are many hawks in the Federal Reserve. The first reason is that the people in the Federal Reserve, including Powell himself, represent the interests of the big capitalists behind them, so essentially it is those big capitalists who tend to favor hawkish policies. The second is that these people are disciples of Western economics, and they firmly believe that raising interest rates can both curb inflation and draw global wealth back to the United States.

So, there are some things Powell cannot make clear, nor does he dare to make them clear. Let's just say he is pretending to be confused.

In addition, the current background in the United States is that being anti-China and anti-Russia is the greatest political correctness, and no one dares to speak softly, which is also a factor.

So, what is the impact of the long-term high interest rates of the US dollar on our interest rate cuts and the economy?

From the essence, the currency of a country is not wealth, and it must be based on the economy or assets. In other words, currency must correspond to production capacity, goods, or assets. If a country lacks or even lacks these things, the currency is just a piece of waste paper.

So, when a country's currency begins to implement high interest rates, it may temporarily bring wealth backflow because everyone is looking at the surface interest rate at this time and chasing high interest rates.

However, after a while, these currencies must correspond to assets and returns to make them truly valuable. If the currency cannot find these domestically, due to its profit-seeking nature, it will run back to the world to find high-quality assets and investments.

So, raising interest rates for the US dollar is a short-term solution, not a policy that can work in the long term.

Over time, the US dollar will return to its nature. What is its nature?Recently, many of us have noticed that we have allowed the free flow of foreign exchange, which is a manifestation of our confidence in our economy and RMB assets.

The nature of the US dollar is currency, it is not an asset, nor is it wealth. The interest rate hikes and cuts of the US dollar can cause economic fluctuations, mainly because of its status as the world's currency, rather than any magic it possesses itself.