The Federal Reserve is deliberately planning to reduce interest rates once next year, but the expansion of the balance sheet starts this month, indicating a seemingly hawkish yet dovish stance. The liquidity issues in U.S. banks are significant and cannot wait until next year; they must be addressed immediately.
There will still be a major interest rate cut in 2026, so do not believe the dot plot's expectations management.
The most important political benefit is that 2026 will be a significant year for U.S.-China cooperation, restarting the global economy. Our Vice Premier just mentioned during a meeting with U.S. business representatives that China and the U.S. need to extend the cooperation list.
The financial market may welcome a favorable trend in 2026, possibly even a major bull market! Anything is possible; let's look forward to it [hehe]