Institution: The Fed's combination of interest rate cuts and balance sheet reduction may boost market risk appetite

Odaily Planet Daily reports that the Federal Reserve's policy committee may simultaneously take two decisively dovish steps on Wednesday: a 25 basis point rate cut and signals of further easing, while also announcing the end of its balance sheet reduction program (a move that could put downward pressure on Treasury yields). Derek Tang, an analyst at Fed watcher LHMeyer, noted: "The dual actions of a rate cut (coupled with expectations of further easing) and an early halt to the balance sheet reduction program will significantly support market risk appetite." He added that while the end of the balance sheet reduction this week remains uncertain, the recent tightening of financing markets makes such a decision significantly more likely. (Jinshi)