Why does everyone say that a Fed interest rate cut is favourable information for the US stock market/crypto world and can create a bull run?


In simple terms, the Fed lowering interest rates is like turning on a faucet, money flows into the stock market and the crypto world, while raising interest rates is like turning off the water, with money going back to the banks. However, if the U.S. is simultaneously raising interest rates while aggressively issuing government bonds to inject liquidity, it becomes a "both injecting and withdrawing water" operation, resulting in a market where money is abundant and stocks rise. In short, it wants to harvest globally without harming itself!
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