December 11, 2025, at 3 AM, the Federal Reserve finally announced a rate cut — 25 basis points!
Honestly, this operation is purely (standard), completely failing to meet market expectations: everyone was hoping for at least a 50 basis point "big package" to activate sentiment, but this? Basically no positive stimulus, the market directly lost its excitement.
More importantly, at 3:30 AM, Powell's speech dumped a bucket of cold water on the market.
All are negative signals:
❶ The inflation problem has finally eased, but employment has become a "major issue"! Now the Federal Reserve must focus on solving the employment rate; since there is no urgency to further suppress inflation, a significant rate cut is definitely off the table — (not urgent to solve inflation, so there won't be a significant rate cut) (negative signal)
❷ Rate cut in 2026? Currently, it is tentatively set for 1 time! The willingness to cut rates is extremely weak, and the funds that originally had expectations are now directly extinguished (negative signal).
To summarize: the market was looking forward to a 50 basis point "rescue", but only received a 25 basis point "routine operation", plus Powell's release of the "not urgent for a significant rate cut + few rate cuts next year" double negative signal, short-term market sentiment is likely to be under pressure, and the crypto and Web3 sectors will also have to bear a wave of cooling expectations (negative signal)
