Federal Reserve Rate Cut + $40 Billion Debt Purchase: Why is the capital not directly entering the stock and cryptocurrency markets, and what is the positive logic?
1. Summary of Core Messages in Simple Terms
Interest Rate Adjustment: The Federal Reserve cut interest rates by 25 basis points, lowering the benchmark rate to 3.5%-3.75%, while simultaneously reducing the overnight reverse repurchase, standing repurchase, and reserve key rates, directly lowering market financing costs.
Debt Purchase Plan: Purchase $40 billion in short-term Treasury bills within 30 days starting December 12, with high purchase levels maintained in the following months before significantly slowing down.
Economic Expectations: Raise GDP growth and inflation forecasts for 2025-2028, with inflation gradually converging towards the 2% target, unemployment remaining stable, but still emphasizing uncertainty in the economic outlook.