#美联储降息 The Federal Reserve has just finished its meeting, and the market is a bit confused. There are actually two key pieces of information—one bad news and one good news.

First, the bad news: According to the December Federal Reserve dot plot, only one rate cut is expected by 2026. This is far below previous market expectations. In other words, there will be little room for rate cuts next year. That’s why everyone was a bit disappointed when they saw this data.

But the Fed didn’t completely mess up either. The good news is—they announced a $40 billion asset purchase plan starting this month to expand the balance sheet. The money will mainly flow into short-term US Treasuries, aiming to ease tensions in the overnight lending market. The timing is also faster than market expectations.

It’s important to note that the Fed emphasizes this is not quantitative easing, just a temporary operation. They plan to stop purchases at some point next year. But regardless, the $40 billion liquidity injection still has a stimulative effect on the market. That’s why, after this news came out, both the crypto market and US stocks rebounded.

However, there are also concerns. There are no rate cut plans for the next meeting, which means it’s uncertain how far this rebound can go. If the good news is exhausted, the market’s momentum for a rebound could weaken. So everyone should be cautious about this rally. $SOL