At 3 a.m., the Federal Reserve finally implemented the 25 basis point rate cut. The market's initial reaction? It shot up nearly 10%—this move was actually an early digestion of expectations.

But the story quickly reversed. When the dot plot came out, everyone was stunned: rate cuts in 2026? And it all depends on economic data. Once the news spread, the market plunged from around 94,000 to 90,000, and it’s now below 90,000.

This meeting basically revealed two things: no rate hikes in the short term? Don’t even think about it. As planned, one cut in 2026, and another in 2027.

Some people think the rate cut was too small and not very useful. But honestly, you can’t judge the effect just by how many basis points are cut—this is a comprehensive issue. The key point is that rate cuts will continue in the next year or two, indicating that we are still on a path of easing interest rates. As long as the rate-cutting train doesn’t stop, that’s good news for the financial markets. The big trend is there, and it usually doesn’t change overnight.

More importantly, starting December 13, the Federal Reserve will repurchase $40 billion worth of short-term government bonds every month.

What does this mean? The U.S. is officially loosening monetary policy, injecting liquidity into the market, and increasing available funds. The Fed has been tightening and shrinking its balance sheet, which concluded on December 1. From the 13th onward, the rules of the game have changed—expanding the balance sheet and adding money.

On the surface, this meeting was similar to the previous ones—it only cut 25 basis points, and many might think it was nothing special. But if you look closely...