Federal Reserve's "hawkish rate cut" sends shockwaves through the financial world!
Mixed signals disrupt the 2026 policy bureau
Family! Another major scoop in the financial world! Bitunix analysts reveal that this time, the Federal Reserve's "hawkish rate cut" has completely confused the market, with mixed signals being released wildly, internal divisions are about to ignite, and the 2026 policy path has been repriced, stimulating a surge!
The operations on December 11 were incredible! The FOMC cut rates for the third consecutive time, lowering it by 25 basis points at once, bringing the rate down to 3.50% - 3.75%.
But can you believe it? Three opposing votes directly exposed a significant expansion of policy divergence! The statement added "consider adjusting the magnitude and timing of interest rate changes" and removed the description of "low unemployment rate"; the judgment of employment risks and inflation stickiness is visibly cracking!
Powell's post-meeting remarks were also substantial: he mentioned being close to the upper edge of the neutral zone, and no one would expect rate hikes; inflation risks are still present, but he deflected blame onto tariffs, suggesting that reversing tariffs could bring inflation back to the lower end of the 2% range.
The employment situation is even more intense, acknowledging that data has been overestimated, and the downward risk is undeniable! The market directly changed its expectations, predicting a cumulative rate cut of 55 basis points next year, with less than a 25% chance of a rate cut in January; this reversal is too stimulating!
Institutions have also started to tear each other apart! Some claim inflation is improving and expect further cuts in March next year; others suggest pausing in January and observing in the first half of the year, or even dragging it out until after June. Wall Street institutions are complaining that the consistency of the FOMC led by Powell has shattered!
The market is going crazier, during the statement meeting gold and silver first shook and then surged, with silver hitting a historical high; U.S. Treasury yields and the dollar plummeted, while non-U.S. currencies and U.S. stocks collectively rejoiced.
Trump even added fuel to the fire, saying the rate cut wasn't enough, and policy uncertainty is at an all-time high!
Bitunix analysts summarized it perfectly: the pace of rate cuts is chaotic, internal divisions are significant, and the 2026 leadership may still change; the market can only guess policies based on data and liquidity.
Short-term volatility is about to explode; directional signals must wait for employment and inflation to reveal more! This financial drama is more gripping than a series, so stay tuned for the follow-up big scoop!