The Fed has finally taken a step towards lowering interest rates, adjusting the rate range to 4%-4.25%, a decrease of 0.25%. This decision marks a shift in monetary policy towards easing, having a profound impact on the global financial markets.

First, the decline in the cost of dollar financing will directly lead to an increase in global dollar liquidity. This influx of funds will seek investment opportunities, likely first flowing into emerging market stocks, bonds, and commodities, pushing up short-term asset prices. However, the duration of this liquidity will depend on the economic fundamentals of each region. For countries with heavy external debt burdens, exchange rate fluctuations may pose additional risks.

Secondly, the US Dollar Index may face downward pressure, and non-US currencies are expected to appreciate. However, this appreciation is not a universal phenomenon. Emerging economies with weak economic fundamentals and heavy external debt burdens may still face exchange rate fluctuations. Investors need to be cautious of the so-called "phase appreciation" and pay special attention to countries with high external debt ratios to avoid falling into risk.

Finally, the attractiveness of risk assets and safe-haven assets will change. Theoretically, interest rate cuts are favorable for improving stock market profit expectations while pushing down U.S. Treasury yields, which may lead to a flow of funds into hard currencies such as gold. However, the actual impact will depend on the economic conditions of various countries, policy coordination, and market expectations. If there is a discrepancy between market expectations and actual conditions, the effect of interest rate cuts may be weakened.

The Fed's decision to cut interest rates is undoubtedly an important positive factor, but it should not be seen as a panacea for all problems. Whether in the cryptocurrency market, the stock market, or the gold market, investment decisions need to be based on accurate judgments of market timing and trends, rather than blindly following policy changes.

In this round of monetary policy adjustments, investors should closely monitor the liquidity conditions and exchange rate risks in emerging markets, and adopt appropriate hedging or bottom-fishing strategies based on the actual situation. Successful investing requires calm analysis and rational decision-making, rather than blindly following policy changes.