The Federal Reserve may simultaneously cut interest rates by 25 basis points and end its balance sheet reduction plan.

According to ChainCatcher, citing Golden Ten Data, the Federal Reserve's policy committee may take two decisive dovish actions on Wednesday: implementing a 25 basis point rate cut and signaling further easing, while also announcing the end of its balance sheet reduction plan. This move could put downward pressure on Treasury yields. Derek Tang, an analyst at Federal Reserve watcher LHMeyer, pointed out that the combination of a rate cut and an early halt to balance sheet reduction would provide significant support for market risk appetite.