The Federal Reserve has cut interest rates again, but this time the signals are a bit tough to swallow!

On December 11, the Fed confirmed the third rate cut of the year, with the benchmark rate falling into the 3.50%-3.75% range, a total of 75 basis points for the year. On the surface, it seems quite standard, but the two underlying signals are the real "highlights"—

**The Opposing "Tight" and "Loose" Policies for Next Year**

When the dot plot was released, investors were collectively confused: only one rate cut planned for 2026? That was like pouring cold water on the market. In other words, next year is likely to enter a "pause" mode for rate cuts. Many analysts predicted this early on, but the official confirmation still feels different.

Meanwhile, the Fed turned around and announced a $40 billion asset purchase plan, which started this month. Not only was the scale beyond expectations, but the response was also very quick, with the market directly describing it as "feeding candy." However, officials repeatedly emphasized: this is not QE, just buying short-term government bonds to improve liquidity, and they will gradually wind down at some point next year.

**Powell's "Calm" Attitude**

His post-meeting speech was very cautious, even somewhat "helpless"—saying that the economy hasn't shown the obvious changes seen after the last meeting, nor is it overheated. Foreign media's evaluation was quite blunt: even hawkish rate cuts look like this, which shows how chaotic market expectations for future policy are.

By the way, Trump fired off again, criticizing the rate cut as too conservative and openly calling for it to be doubled. Wall Street wasn't very pleased either, feeling that this wave of easing isn't really quenching the market's thirst.

**Short-term Boosts in the Crypto and Stock Markets, but What About Long-term?**

The liquidity injection news did push crypto prices and US stocks higher, but don't celebrate too early—next year's rate cuts might really go into "hibernation," and the sustainability of this rebound is questionable. If policy benefits gradually materialize, market volatility could become even more intense.

The Fed's approach is essentially a balancing act: one hand holding the "loose" of rate cuts, the other holding the "tight" of forward-looking policy signals. With complex signals and mixed expectations, the upcoming market will likely be more tumultuous. What do you think about the Fed's strategy?