The interest rate cut is here! #美联储降息 #币圈现状 What did Powell actually talk about in the speech? The two main points of this rate cut meeting are as follows:
1. According to the latest December Federal Reserve dot plot, the Fed's average expectation for a rate cut in 2026 is only one cut, which is far lower than the market's expectations. So there might not be any rate cuts throughout 2026, which is consistent with what Shuqin predicted in yesterday's program.
2. After discussing the bad news, the Fed also provided some good news. The Fed will conduct $40 billion in asset purchases this month to expand its balance sheet, which is considered a form of easing, and it will start this month. This is somewhat beyond market expectations and is a positive development.
However, the Fed emphasized that this is not quantitative easing, as the Fed is buying short-term U.S. Treasury bonds aimed at addressing the current tight overnight lending market. This is not a continuous purchase; the Fed plans to stop buying at some point next year.
Overall, this meeting resulted in the Fed delivering a stick of no rate cut followed by a sweet date of easing for the market, which is a decent outcome. The cryptocurrency market and U.S. stocks began to rebound due to the unexpected easing, but since there will be no rate cut at the next meeting, whether this rebound can be sustained remains a question. Everyone should be cautious about the good news being fully priced in. @大森日内波段 Follow me for discussions $BTC
