Fed Decision Preview: More Important than Rate Cut is Balance Sheet Signal

By: theblockbeats.news|2025/12/09 09:16:01

BlockBeats News, December 9th. According to foreign media analysis, the Federal Reserve officially ended its balance sheet reduction on December 1st. Bank reserves have dropped to historically tight financing-related levels, and the Secured Overnight Financing Rate (SOFR) has periodically tested the upper limit of the policy rate corridor. The U.S. banking system is gradually experiencing liquidity stress. Against this backdrop, the most important signal from the FOMC may not be a 25 basis point rate cut, but rather the direction of its balance sheet strategy. The Federal Reserve is expected to clearly outline, either directly or through its implementation statement, how it intends to transition to a Reserve Management Purchase (RMP) plan. According to Evercore ISI, this plan could potentially start as early as January 2026, with a monthly investment of around $35 billion in Treasury purchases, resulting in an annual balance sheet growth of over $400 billion. (Jin10)

Interest rate decisions by major central banks such as the Federal Reserve are significant macroeconomic events impacting global financial markets, directly influencing market liquidity expectations and risk appetite. As the cryptocurrency market continues to develop and its trading structure and participants mature, the crypto market is gradually being incorporated into the macroeconomic pricing system.

U.S. Bank Industry Embraces Blockchain Transition

Key Takeaways The U.S. banking sector is transitioning towards blockchain technology as regulatory discussions turn into implementation. The…

Fed Chair Candidate Upsets Expectations, Powell Surges Ahead: Will "Rate Cuts + Balance Sheet Reduction" Become the New Main Theme?

Powell has recently advocated for a rate cut, but he is more hawkish on balance sheet issues.

Trump’s Influence on Interest Rates: A Matter of Debate at the Fed

Key Takeaways Kevin Hassett, a leading contender for the Federal Reserve chair, asserts that President Donald Trump’s views…

How Prediction Markets Raise Insider Trading and Credit Risks

Key Takeaways: Prediction markets are becoming significant financial players, turning opinions into tradable assets but raising concerns about…

FOMC December 2025 Rate Cut Analysis: Impact on Bitcoin Price and Crypto Market for WEEX Users

The Federal Open Market Committee (FOMC) meeting on December 10, 2025 concluded with a widely anticipated 25 basis points (0.25%) rate cut, bringing the federal funds target range to 3.50%–3.75%.

Best Altcoin to Buy Now Under $0.01 – December 10

Key Takeaways: PEPENODE ($PEPENODE) is highlighted as a promising altcoin to consider, especially for those seeking investment opportunities…

The Fed Cuts Rates Again But Disagreement Increases, Next Year's Path May Lean More Conservative

While this interest rate cut was as expected, there was a rare internal Federal Reserve divergence, hinting at a potential extended pause in the future. At the same time, they stabilized year-end liquidity by purchasing short-term bonds.

Trump Takes Over the Fed, Impact on Bitcoin in the Coming Months

The Once-in-a-Century Transformation of the U.S. Financial System

Best New Meme Coin to Buy Today Under 1 Cent – 9 December

Key Takeaways The cryptocurrency market is experiencing a slight dip, but optimism remains due to potential Federal Reserve…

DiDi in Latin America is already a digital banking giant

Attempting to directly transplant the domestic "perfect model" is not feasible. We can only earn respect by demonstrating the ability to "solve pain points."

After the market digests the interest rate cut expectations, how should we navigate the direction of risk assets?

The last interest rate cut of the year brought rates down to ______%. The true market movement depends on the expectation gap rather than policy action.