[Fed Decision Preview: Balance Sheet Expansion Signal More Important Than Rate Cuts] BlockBeats News, December 9, according to foreign media analysis reports, the Federal Reserve officially ended its balance sheet reduction on December 1, with bank reserves dropping to historically low levels associated with tight financing conditions. The Secured Overnight Financing Rate (SOFR) has also periodically tested the upper limit of the policy rate corridor. The U.S. banking system is gradually entering a state of liquidity strain. Against this backdrop, the most important signal from the FOMC may not be the 25 basis point rate cut but rather the direction of its balance sheet strategy. The Federal Reserve is expected to clarify or outline through its implementation notes how it plans to transition to the Reserve Management Purchase Program (RMP). According to Evercore ISI, this program could begin as early as January 2026, with approximately $35 billion per month allocated for purchasing Treasury bills, leading to an annual balance sheet growth of over $400 billion. (Jin10)