December FOMC: Interest rates: A rate cut is the baseline scenario, but the outlook suggests a slowdown is more likely in 2026. It could happen once per quarter, or maybe not at all until Hassett takes office. In short, it’s hard to expect a more dovish stance on interest rates in December—at best, it’ll meet expectations. Liquidity: There’s a chance they’ll mention short-term debt balance sheet expansion, which could have some effect, but it’s different from QE. In 2026, fiscal easing will be the main focus, with market adjustments relying on TGA + balance sheet expansion. By 2026, the priority of interest rate policy in market trading will decrease, while fiscal policy will take on greater importance. All in all, I personally think this meeting is unlikely to bring more dovish expectations. The late Friday session + early Monday session also reflected a muted reaction, with volatility shrinking significantly compared to October-November. Personally, I’ve chosen to hedge all positions and stay neutral to ride this out.