The Federal Reserve has acted again, this time truly loosening monetary policy.

The December FOMC meeting confirmed: a 25 basis point rate cut, bringing the target range to 3.50%-3.75%. This is the third consecutive move since September. Sounds good, but there's a lot behind the voting results—3 out of 9 officials opposed, a rare situation in nearly six years. Some think the cut is too small (hoping for a bold 50-point cut), while others prefer to hold steady. In other words, the Fed is no longer clear on the economic outlook, and this "high uncertainty" was explicitly highlighted in the official statement.

More interesting are the supporting actions: while cutting rates, they also announced the start of Treasury purchases from December 12. This combination sends conflicting signals—concern about a potential slowdown in the labor market (the statement specifically mentions this risk), yet also playing a balancing act on inflation (only mentioning it as "slightly elevated"). Basically, policymakers are wavering between two difficult choices.

The market immediately responded: US stocks turned positive, the dollar weakened, and precious metals rose. But don’t be fooled by the short-term gains; based on the dot plot expectations, these officials are quite cautious about rate cuts next year, even hinting at a possible pause. The real battle is just beginning.

There’s an old question in trading: is this the start of a rebound, or a false hope within a bear market? The decision is in everyone's hands.