Federal Reserve's 'Rate Cut + Balance Sheet Expansion' Double Whammy! $40 Billion Monthly Injection in Place, Is the Christmas Rally Stable?
$ZEC The heated Federal Reserve meeting has concluded with a 25 basis point rate cut. But what truly ignited the market's enthusiasm was the big move that followed the rate cut—immediate resumption of quantitative easing, injecting $40 billion per month into the market. This unexpected Christmas gift instantly lifted market sentiment, but it also concealed several thought-provoking signals.一起聊聊 Hawkish rate cut confirmed! The largest divergence in five years has surfaced. This rate cut reduces the federal funds rate target range to 3.5%-3.75%, fully aligning with market expectations, but the underlying divergence has reached its highest since 2019. Among the 12 voting members, 3 explicitly opposed the rate cut, indicating that concerns about inflation’s resurgence within the Federal Reserve have never dissipated.
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