【Federal Reserve Decision Overview】

1. Maintain Interest Rates: The federal funds rate remains at 5.50%-5.75%, with no rate hikes for the sixth consecutive meeting, as the policy remains tight to curb inflation.

2. Slowdown in Balance Sheet Reduction: Starting in September, the monthly reduction limit for U.S. Treasuries will decrease to $30 billion, while the limit for MBS will remain at $35 billion. This aims for a smooth transition, reducing market pressure and leaving room for future policy adjustments.

3. Inflation Assessment: Inflation data has improved, but remains high; more evidence is needed to confirm a return to the 2% target.

Outlook: The market anticipates paving the way for future rate cuts, but the timing depends on inflation and employment data, with the Federal Reserve making decisions at each meeting.