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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.

According to ChainCatcher, citing Golden Ten Data, Federal Reserve Chairman Jerome Powell previously described last month's 25 basis point rate cut as a risk management measure aimed at avoiding undue drag on the economy. Neil Dutta, Chief Economist at Renaissance Macro, pointed out that if another 25 basis point rate cut occurs this week, its risk controllability would be similar. He analyzed that the continued accumulation of weakness in the labor market provides reason to expect inflation to cool accordingly.