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The Federal Reserve's July meeting kept interest rates unchanged at 3.5% -3.75%, and the market closed its $5 trillion hedging positions around the rate hike. In August, the number of open contracts for federal fund futures exceeded 1 million. After the resolution was announced, the number of open contracts for the contract decreased by about 140000. The net short position of leveraged funds reversed, and the price of federal fund futures rose in August, causing losses for short positions betting on interest rate hikes. Federal Reserve Chairman Kevin Walsh did not signal a rate hike, leading to a cooling of related trading. AI interpretation: The Federal Reserve's decision to keep interest rates unchanged has ended the market's aggressive bet on further rate hikes, and the closure of large-scale short positions directly reflects the expected implementation of policy shifts. This measure effectively eliminated the excessive leverage of interest rate hikes in the financial market and prompted the flow of funds to reprice. The smooth implementation of interest rate resolutions has eliminated short-term policy uncertainty, and the market's focus has quickly shifted from interest rate panic to rational evaluation of future interest rate paths. This decision clarifies the defensive stance of the current monetary policy and provides much-needed liquidity stability expectations for the financial market.