0x Information Report, December 8, despite the market seemingly viewing another interest rate cut by the Federal Reserve as a foregone conclusion, pushing the U.S. stock market close to historical highs last Friday, the results of this week's Federal Reserve policy meeting may not provide the true impetus for a bull market in stocks and other risk assets from interest rates. After quietly halting the balance sheet reduction, how the Federal Reserve manages its massive balance sheet and whether it injects new liquidity into the market is crucial. The global interest rate strategy team at Bank of America stated last Friday that they expect the Federal Reserve to announce this week that it will begin purchasing Treasury bills with maturities of one year or less at a pace of $45 billion per month starting in January as part of "reserve management operations." Others believe it may take more time, and that the Federal Reserve doesn't need to take excessive action to keep the market running smoothly. Roger Hallam, the global interest rate head at Vanguard Fixed Income Group, expects the Federal Reserve to start purchasing Treasury bills at a pace of $15 billion to $20 billion per month by the end of the first quarter or early second quarter of next year. Kelly from PineBridge expects the Federal Reserve to cut rates again by 25 basis points on December 10, which will bring the policy rate down to a range of 3.5%-3.75%, moving one step closer to the historical neutral rate of about 3% aimed at maintaining stable economic operations.