Analysts: Federal Reserve may shift towards dovish direction According to a report by Golden Finance, on the 10th local time, after a two-day monetary policy meeting, the Federal Reserve announced a 25 basis point reduction in the target range of the federal funds rate to between 3.50% and 3.75%. At the same time, the Federal Reserve announced plans to expand its balance sheet starting from this month, which has attracted market attention. In terms of specific actions, the Federal Reserve said that it would purchase US $40 billion of short-term US treasury bond bonds in the next 30 days from this Friday local time, and it is expected that the purchase scale will remain high in the next few months, and then gradually reduce. Analysts interpret this as an "implicit" way to lower interest rates. Within the Federal Reserve, hawks typically focus more on inflation and tend to maintain high interest rates; The doves, on the other hand, are more concerned with supporting the labor market and hope to lower interest rates. The focus of the market has now shifted to the next policy direction of the Federal Reserve. Although the dot plot shows that the Federal Reserve predicts only one interest rate cut next year, which is the same as the forecast three months ago, the market is betting that the Fed's decline next year will be even greater. According to CME Federal Rate Futures, the market believes that the probability of the Federal Reserve cutting interest rates twice or more in 2026 is about 68%. Analysts also interpret from the economic outlook forecast released by the Federal Reserve that this year's Fed may be shifting towards dovish direction.