The Federal Reserve's December meeting minutes have just been released, and the market reaction is tepid—this rate cut may be the last positive signal in the short term.

Although the Federal Open Market Committee ultimately decided to cut interest rates by 25 basis points, there was significant internal disagreement. Six officials publicly opposed the rate cut, mainly due to concerns that inflation has not yet returned to the target level. This clearly reflects a noticeable shift in the decision-making body's attitude.

The most striking update is the dot plot: the expected number of rate cuts in 2026 has been revised from multiple adjustments to just one. Compared to the market's previous optimistic outlook, this is undoubtedly a wake-up call. In other words, interest rates are expected to stay at relatively high levels for a longer period.

The upcoming strategy is already quite clear—hold steady. Most committee members prefer to wait and see; unless there are obvious signs of economic deterioration, no further rate adjustments are expected for now. Officials even used a vivid metaphor: due to the U.S. government shutdown causing data interruptions, it’s like driving in dense fog—caution is necessary when the road conditions are unclear.

However, the Fed is not entirely on hold. To guard against liquidity risks, they have proactively launched an balance sheet expansion plan, purchasing $40 billion worth of short-term bonds each month to maintain ample market liquidity. This is a delicate balance—pausing the rate hike cycle while ensuring the financial markets do not run out of money.

What does this mean for investors holding assets like BTC, ETH, BNB, and others? The high-interest-rate environment may persist longer, and the pattern of risk assets remaining under pressure is unlikely to reverse in the short term. The market still needs to wait for clearer signs of economic cooling before new opportunities emerge.