the Fed is looking at the downside risk of growth together.

The FOMC minutes were released the day before. It was already said that the rise in long-term interest rates, which started with one of the Fed hawks, President Lori Logan, in early October, had created a tightening environment. And there were comments that starting with this effect, the accumulation of tightening over the past 20 months or so is acting as a downside risk to growth. Yes, the Fed is looking at the downside risk of growth together. Inflation is a downside risk, and growth is a downside risk, so we're talking about two-sided risk.

But to draw a clear line ... there's this two-sided risk, but still, the Fed has emphasized once again that it's most important to get inflation back to its 2% target. So, in unison, they're pointing out that if the inflation data comes up in a clumsy manner, then further rate hikes would be appropriate. They're talking about further rate hikes, but they're not saying any rate cuts anywhere. That's a very difficult thing. Last November, the FOMC said it was going to speed up interest rate hikes. It's a marketplace that had the satisfactory idea of pivoting just by listening to the pace adjustments. But now, the end of rate hikes ... what would you think if you heard something like that? Yeah, I'm expecting a significant rate cut. But the Fed doesn't seem to have that in mind at all. It was time to double-check the Fed and the market's frostbite dream, except that one thing is, like, "The Earth is still spinning." And the market says, "But you guys (the Fed) are going to cut interest rates..." And that expectation still seems to be alive.

And what stood out in the minutes of the Fed was this comment about expanding the standing repo target ... standing repo ... when you sell the government bonds that banks have ... the interest rates are so high that you lose a lot of money. It's a loan system that allows you to put it as collateral at any time and pull cash at any time. There weren't a lot of institutions that could have this standing repo service, and now they're going to expand it. So, some of the banks ... have long-term government bonds, and it's depressing because the price has dropped. But I need cash. So let's sell long-term government bonds that have plummeted in price to get cash. So you have the problem of securing the losses. It gives them the space to breathe. And this gives them the possibility that they can't buy long-term government bonds because they're afraid they'll be tied up. And they have the condition to buy long-term government bonds because they don't know when and how to use them, so they can't. So there's a mortgage for these people. So you can take out the loan as a deposit collateral, so you can tie up the deposit even if it's a little bit longer. There's a demand for long-term deposits. Standing leaps also increases demand for long-term government bonds, and when demand for long-term government bonds increases ... that question can be answered. Who's going to buy U.S. government bonds ... the Fed is getting ready little by little.

And it's not that the minutes didn't mention interest rate cuts at all. There was talk of lowering interest rates…(Eyes are wide open lol) The problem is with this expression. The comment is that even if we cut interest rates in the future, the current quantitative tightening will continue. In reducing interest rates, quantitative tightening will continue. The base rate refers to easing… Quantitative tightening refers to tightening. You can throw strange signals into the market while easing and tightening at the same time. So, in the past, we froze the base rate and then stopped quantitative tightening before we cut the base rate. But this time, even if we cut the base rate, it's appropriate to continue quantitative tightening. Huh. Not right now, but I think by the time we start cutting the base rate, the market will be disappointed once, paying attention to this news. Lowering the base rate is a kind of package gift set that ends quantitative tightening… Even if interest rates are cut, quantitative tightening is going to be great..

Yes, that's what's being said ... the media is paying attention to the market's disappointment that the Fed didn't talk about cutting interest rates. Yes ... in a way, that's the simplest summary ... actually, none of the Fed members were talking about cutting interest rates. I think it was an event that confirmed the gap between the Fed and the market.

We've been talking about the Fed for a while... the rally over the last three weeks... has been the pigeonhole interpretation at the FOMC, which erupted with the adjustment of government bond issues. I can see that the interpretation was a little bit optimistic, except that market participants are currently very optimistic. I don't think they're going to be too stressed out. You have to look at a little bit more clear thinking gap... that our relationship wasn't that solid... or that we really broke up. That's why attention is being paid to the FOMC in December.

I need to talk to you a little bit about the yen and the yuan. In short, it continues into tomorrow. The won's strength against the dollar was unrivaled. The won's strength was so strong that the yuan and the yen couldn't keep up. As a result, the yuan and the yen fell sharply. It became the world's strongest won. I told you last week that it's not sustainable. The yen and the yuan are a little bit stronger against the won, and it's a little bit of a counterbalance. We'll talk more about this tomorrow. Less essays. Thank you.