Breaking news from the rate cut meeting!

The December Federal Reserve dot plot shows only one expected rate cut by 2026, making a rate cut in 2026 unlikely, consistent with Shu Qin's prediction yesterday, which is undoubtedly bearish.
However, the Federal Reserve also threw out a "sweetener" by announcing a $40 billion asset purchase program to expand its balance sheet, starting this month, exceeding market expectations and representing a positive signal. But the Fed emphasized that this is not quantitative easing; they are buying short-term U.S. Treasuries to address tightness in the overnight loan market, and plan to stop purchases at some point next year. $SOL $BNB $ETH
In this meeting, the Federal Reserve rolled out both the "big stick" and the "sweetener." The crypto and U.S. stock markets rebounded due to the surprise liquidity injection, but whether the rally can continue if there is no rate cut at the next meeting remains uncertain. Everyone should operate cautiously and be careful that the positive signals may be exhausted!