【Late Night Bombshell! The Federal Reserve's 6th Rate Cut, Interest Rate Reduced to 3.5%! Starting in 2026, Monthly Liquidity Injection of $40 Billion, A New Round of Stimulus is in Place!】
Last night, the Federal Reserve's monetary policy meeting reignited the market - announcing a 25 basis point rate cut, lowering the federal funds rate target range to 3.5%-3.75%. This is also the sixth rate cut in this round of easing, with the pace of loosening continuing to accelerate.
The market had long anticipated this rate cut. Since September of this year, the Federal Reserve has cut rates by 25 basis points in three consecutive meetings. If we count from the first rate cut in September 2024, the easing has been in effect for over a year.
📉 What signal did the Federal Reserve release?
In the latest statement, the Federal Reserve's stance is clear:
· Although the U.S. economy is maintaining moderate growth, new job creation has clearly slowed;
· The unemployment rate rose in September, and inflation remains high;
· Economic outlook uncertainty has intensified, and risks in the labor market have recently increased.
It is precisely the recent weakness in employment data that directly ignited the fuse for this rate cut.
⏳ Review of the timeline for this round of rate cuts:
· September 18, 2024 → Significant rate cut of 50 basis points, to 4.75%-5% (starting point of this round, the most aggressive)
· November 7, 2024 → Rate cut of 25 basis points, to 4.5%-4.75%
· December 19, 2024 → Another rate cut of 25 basis points, to 4.25%-4.5%
· September 17, 2025 → Continued rate cut of 25 basis points, to 4.0%-4.25%
· October 29, 2025 → Another reduction of 25 basis points, to 3.75%-4.0%
· December 10, 2025 → This time another reduction of 25 basis points, to 3.5%-3.75%
The pace is clear: starting with a sharp cut, then moving steadily forward with each 25 basis point step.
🚀 What’s next?
Although there were previously differences within the Federal Reserve regarding the pace of rate cuts, economic data has already spoken for itself. Whether to continue cutting rates still depends on the subsequent performance of employment and inflation. Meanwhile, the liquidity injection plan of $40 billion per month starting in 2026 has paved a 'fresh water path' for the market. $BTC $ETH
