Last night, the Federal Reserve once again announced its decision to cut interest rates, lowering the federal funds target range to 3.5%-3.75%, a decrease of 25 basis points. This marks the sixth adjustment since the start of this rate-cutting cycle, further solidifying market expectations of easing.

This outcome is not really surprising. Since September this year, the Federal Reserve has been in a continuous rate-cutting mode, with three consecutive meetings each reducing rates by 25 basis points. If we trace back to the first rate cut in September 2024, this easing cycle has been underway for over a year.

The Fed's stance in its latest statement is very clear. On one hand, US economic growth remains relatively moderate, but data on new employment has shown a noticeable slowdown, with the unemployment rate rising slightly in September. On the other hand, inflation remains at a relatively high level, and uncertainties in the economic outlook are increasing. Recent risks faced by the job market also grew. These soft employment indicators directly triggered this rate cut.

Looking back at the entire rate-cutting cycle, it’s quite interesting. On September 18, 2024, the Fed made its first bold move with a 50 basis point cut, bringing the rate from 5.25%-5.5% down to 4.75%-5%. That was the most aggressive move in the entire cycle. Since then, the pace has become quite regular. On November 7, rates were lowered to 4.5%-4.75%, on December 19 to 4.25%-4.5%, and after entering 2025, on September 17 to 4.0%-4.25%, then on October 29 to 3.75%-4.0%, reaching the current range of 3.5%-3.75%.

This process demonstrates the Fed's policy logic: first a strong adjustment to open the situation, then steady progress with each step being 25 basis points—neither rushing nor hesitating. Although there are some differing opinions within the Fed regarding the pace of rate cuts, economic data has already made the decision for them. Whether to continue cutting rates next depends mainly on how employment and inflation develop.

What’s even more noteworthy is that starting in 2026, the Fed plans to inject liquidity of $40 billion per month. This means the market will continuously receive funding, which is undoubtedly positive for asset classes seeking growth opportunities. Digital assets like BTC and ETH tend to attract more attention and capital inflows in an environment of abundant liquidity, which is why each Federal Reserve policy adjustment often sparks widespread market discussion.