The core policy approach of the new Federal Reserve Chair can be summarized as: "cutting interest rates" and "shrinking the balance sheet" in parallel, aiming to achieve a long-term restructuring of the economic framework. Its core logic is as follows: 1. The policy combination may seem contradictory but is actually goal-oriented. Lowering interest rates reduces financing costs for the real economy, supporting the growth of competitive small businesses and tangible industries; at the same time, shrinking the balance sheet tightens liquidity in the financial system, proactively bursting market bubbles. 2. Abandon the "bailout inertia" and break the financial illusion. Break away from the traditional approach of "stock market declines trigger rescue," allowing inefficient companies relying on loose funds to be cleared out, thereby cutting off the long-term expectation that the stock market and the real economy are "cannot fall" together. 3. Structural differentiation: positive for the real economy vs. negative for risk assets. The real economy (especially high-quality small and medium-sized enterprises): benefits from the low-interest-rate environment and gains development space. Bubble-prone risk assets (such as overvalued stocks and junk bonds): face liquidity contraction pressures, with valuations potentially remaining under pressure. Essentially, this is trading short-term pain for long-term health: actively guiding market clearing, promoting the transfer of funds from虚 to real, and reshaping an economic system that relies more on endogenous growth rather than monetary easing.