On December 10th, news came that if the Federal Reserve's interest rate cut exceeds 25 basis points this time, the cryptocurrency market is expected to kick off a super crazy bull market!
The Federal Reserve is about to announce its interest rate decision at 3 AM on Thursday. Currently, the market generally believes there is a high probability of a 25 basis point cut, which would change the interest rate range to 3.50% - 3.75%. However, opinions within this FOMC are not very unified, and some voting members may disagree with further rate cuts. Moreover, due to the government shutdown, the key data for October is missing, so this time's Summary of Economic Projections (SEP) and dot plot are unlikely to see significant changes.
Liquidity is also a key focus for everyone. The balance sheet reduction is nearing completion, and everyone is guessing whether the Federal Reserve will launch a "Reserve Management Purchase Program" (RMP). Bank of America predicts that starting in January, the Federal Reserve may buy about $45 billion of short-term U.S. Treasury bonds each month; if reinvesting mortgage-backed securities (MBS) is included, the scale could reach around $60 billion. If RMP is announced, the focus of this meeting may shift from interest rate direction to the situation of the balance sheet. $BNB
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