FOMC Statement:

1. Statement Overview: The wording remains largely unchanged, with a decision to cut rates by 25 basis points passed by a vote of 11-1, with Harker supporting a pause in rate cuts. ON-RRP lowered by 30 basis points.

2. Interest Rate Outlook: Will consider the "magnitude and timing" of further rate cuts. The median in the dot plot is raised, indicating two cuts each in the next two years, although there is significant disagreement among some officials.

3. Inflation Outlook: The timeline for achieving the 2% inflation target has been pushed back to 2027, with upward revisions for 2024-2026 expectations, and most officials foresee risks tilted to the upside.

4. Economic Outlook: Slight downward revision in unemployment rate expectations. The wording regarding steady economic growth remains unchanged, with upward revisions for real GDP growth expectations for this year and next year, from 2% significantly raised to 2.5%.

Powell's Press Conference:

1. Interest Rate Outlook: Considering rate adjustments can be more cautious, changes in the statement wording indicate that we are in or nearing a phase of slowing rate cuts, and rate hikes next year seem unlikely. If inflation cannot consistently move toward 2%, rate cuts could be slower. Slow rate cuts could hurt the economy and employment.

2. Inflation Outlook: It may take another year or two to reach the target; risks and uncertainties are high; discussing how tariffs may drive inflation.

3. Economic Outlook: Overall economic performance is strong, with economic growth in the second half expected to be faster than anticipated, and no reason to believe that the likelihood of an economic downturn is higher than usual.

4. Employment Outlook: The labor market remains robust and is not a significant source of inflationary pressure; it has not cooled to concerning levels, and will continue to be monitored.

5. Other Statements: (Regarding Bitcoin reserve policy) The Federal Reserve does not allow nor intends to hold Bitcoin. Today's interest rate decision was a relatively difficult choice.

6. Market Reaction: From the release of the statement to Powell's speech, spot gold fell sharply by $56; the dollar index has risen by 110 points since the announcement, reaching a two-year high; 2Y U.S. Treasuries rose by 15 basis points; the Nasdaq's decline expanded to 3%; Bitcoin fell by over $5000.

7. Latest Expectations: Traders' pricing for Federal Reserve rate cuts continues to decrease, with expectations of only a 37 basis point cut in 2025, far below the 75 basis points anticipated before the meeting.