Blofin: Data does not support the claim of a US economic recession.

Wu learned that Blofin's analysis pointed out that the primary focus should be on whether the current market risks have been fully digested and what expectations should be maintained in the short to medium term. The next step is to observe the actions of the Bank of Japan. The Bank of Japan may lack sufficient cash reserves to continue intervening in the bond market and may choose to raise interest rates quickly to narrow the spread with the Federal Reserve, bringing the yen exchange rate back to a more reasonable level. However, the possibility of arbitrage trading closing positions triggering a complete reversal of the U.S. financial cycle is low, as the fundamental employment and economic data do not support an imminent recession. The end of arbitrage trading still affects investor sentiment, with bearish expectations spreading in multiple markets in the short and medium term. If the interest rate spread between the Federal Reserve and the Bank of Japan narrows rapidly, asset prices may further decline.