Breaking News: Fed Rate Cut Tonight Highly Likely, How 'Politicization' of Monetary Policy Is Reshaping Central Bank Actions Set to Be Key Focus
BlockBeats News, December 10th. Tonight, the Fed's final monetary policy meeting of the year arrives. The interest rate decision will be announced at 3:00 AM Thursday (UTC+8), with Fed Chair Powell holding a monetary policy press conference at 3:30 AM (UTC+8). According to CME FedWatch, the probability of a 25 basis points rate cut is 87.6%, making a rate cut tonight quite likely. However, the Fed's key focus this week is not on the rate cut itself but on whether to inject new liquidity into the market and how the "politicization" of Fed officials' diverging views will reshape the monetary policy path for 2026.
The market is watching closely to see if the Fed will signal balance sheet expansion after the rate decision. With the balance sheet runoff quietly halted, how the Fed manages its massive balance sheet and whether it will inject new liquidity into the market are crucial questions. Last Friday, Bank of America's global rates strategy team stated that they expect the Fed to announce this week that starting in January, they will purchase Treasury securities with maturities of one year or less at a pace of $45 billion per month as part of "reserve management operations."
This week's Fed meeting is expected to be one of the most controversial in recent years, more like a "political stress test." The policymakers' divergence on the outlook for rate cuts will reshape the monetary policy landscape for the US in 2026. Of the 12 voting members of the Federal Open Market Committee (FOMC), 5 have expressed opposition or skepticism toward further monetary policy easing, while 3 members support a rate cut. This further reinforces the market's narrative that the Fed is becoming increasingly politicized. Since 2019, the Fed's policy committee has never seen three or more dissenting votes in a single meeting, a situation that has occurred only nine times since 1990.
You may also like

Ten Thousand Words Interpretation of STRC: Strategy for Making Money to Buy Coins New Magic

What competitive advantages are still defensible in the AI era?

For Whom the Bell Tolls, For Whom the Lobster Feeds? A Dark Forest Survival Guide for the 2026 Agent Player

Circle CEO's Latest Interview: Stablecoins Are Not Cryptocurrency

Deconstructing the Public Chain Pharos Capital Game: Is a $950 million valuation supported by assets like photovoltaics just a shell transaction under layers of betting?

a16z: AI is making everyone 10x more productive, but the true winner has yet to emerge

Why did the star Web3 project Across Protocol choose to abandon DAO?

In fact, ETH scaling is a major benefit for L2

Memories: 10 Key Contributions of the TON Core Team That Few People Knew in the Early Days

2025 South Korea CEX Listing Post-Mortem: Investing in New Coins = 70% Loss?

BIP-360 Analysis: Bitcoin's First Step Towards Quantum Immunity, But Why Only the "First Step"?

50 million USDT exchanged for 35,000 USD AAVE: How did the disaster happen? Who should we blame?

The Cryptographic Past of the Middle East

Resolving the Intergenerational Prisoner's Dilemma: The Inevitable Path of Nomadic Capital Bitcoin

Who Will Control AI? Why Decentralized AI May Be the Only Alternative to Government and Big Tech
AI has become critical infrastructure, and governments and corporations are competing to control it. Centralized development and regulation are entrenching existing power structures. The Web3 community is building a decentralized alternative — distributed compute, token incentives, and community governance — before that window closes.

Vitalik wrote a proposal teaching you how to secretly use AI large models

On the eve of the explosion of on-chain options

WEEX AI Hackathon: How Did This AI Trading Winner Succeed?
A self-taught AI trading enthusiast achieved top-10 results at the WEEX AI Hackathon. Learn about the mindset, AI tools, and lessons behind this impressive performance.