Fed Decision Preview: More Important than Rate Cut is Balance Sheet Signal
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)
You may also like

WEEX Live mode: Monitor 20 trading pairs at once and trade like a pro

Morning Report | Secret Network loses $4.67 million due to cross-chain vulnerability; Michael Saylor releases Bitcoin Tracker information again, may disclose increased holdings data next week

Kalshi's biggest competitor is not Polymarket

WEEX Makes Affiliate Access Easier on the Web and in the App

Customize Your Spot Trading Page: Drag Modules and Move the Order Panel Where You Want It

Perp DEX: The Next Generation Exchange "War"

10 Counterintuitive Insights on Latin American Payments

The AI gamble of mining companies: Valuations enter a phase of differentiation, and it's hard to turn the tide

A letter from Alliance to entrepreneurs: Written on the occasion of Cursor selling for 60 billion dollars

Stablecoins Finally Find Real Returns: On-Chain Reinsurance Re Explained | Interview with Re Founder Karan Saroya

The impossible triangle is simply a pseudo problem

Will MicroStrategy fall into a death spiral? What will the macro trend be in the second half of the year?

Blockchain Capital Partner: The Core Secret of Arbitrage

STRC unanchored by 11%, can the perpetual motion machine of Strategy still operate?

Bitcoin Market Analysis 2026: Can BTC Reach $150K by Year-End?

Bitcoin ETF Outflows Hit a Record $4.4 Billion: What Are Traders Doing With Their Cash?

WEEX App Just Got Smarter – New Tabs for Faster Trades & Easy Asset Management

