Wash's monetary policy is another form of "buying time to gain space."

Yesterday was the Senate hearing for the Federal Reserve Chair nomination, and Wash once again emphasized his "balance sheet reduction + rate cuts" monetary policy.
Lowering interest rates will reduce the returns on deposits, prompting funds to seek higher-yield, low-risk opportunities, such as U.S. Treasuries.
U.S. Treasuries are issued through auctions; when demand for Treasuries increases, more bidders participate, and the trend is for interest rates to decline.
However, on the other side, the Federal Reserve is shrinking its balance sheet. Over time, the Fed is likely to reduce its holdings of Treasuries, which will lead to a gradual decrease in the demand for Treasuries in the future.
Wash's plan is probably to first lower Treasury yields, reducing the U.S. Treasury Department's financing burden.
As time passes, the U.S. economy gradually improves, and Treasury tax revenues increase, allowing for a slowdown in Treasury issuance expansion.
Therefore, Wash's monetary policy might be playing a "buying time to gain space" strategy.
In fact, Powell's massive liquidity injection in 2020-2021 and the high tightening from 2022-2024 follow a similar principle.
First, through extreme easing, to alleviate the negative impacts of the pandemic, then through tightening, to delay recession into the future.
The benefits of delaying include no longer facing social health issues and the promotion of economic growth through new industry innovations.
The difference is that Wash's policy incorporates Treasuries, while Powell mainly responds to recession.