Analysis: The Federal Reserve is not as "hawkish" as expected; the easing cycle is still ongoing.

Odaily Planet Daily News: The Federal Reserve signaled this week that it remains open to further rate cuts in 2026, which was welcomed by investors. The market had already prepared for the central bank to implement a “hawkish rate cut,” meaning lowering the benchmark federal funds rate, but also strongly implied no further adjustments. The US stock market rose along with bonds, with the Dow Jones Industrial Average climbing nearly 650 points (1.3% increase) on Thursday, hitting a new all-time high. Despite internal disagreements within the Federal Reserve and the release of complex signals on Wednesday, many still see signs that even a slight further softening of the labor market could prompt the central bank to cut rates again in the coming months. The Fed announced it will expand its balance sheet by purchasing short-term Treasury bonds, a measure aimed at easing recent pressures in the overnight lending market, which also reassured investors. Investors expect that the Federal Reserve will be very different next year, and Trump has already begun conducting final interviews for potential successors to Jerome Powell this week. (Jinshi)