Powell's recent actions delivered a "one hand candy, one hand whip" combo to the market.

First, regarding interest rate cuts. The latest dot plot directly dashed expectations for 2026—possibly only one rate cut for the whole year! Much less than what the market previously anticipated. In other words, the Federal Reserve is likely to maintain current rates this year; don’t expect them to keep cutting rates and sending big gifts. That fantasy of "rapid easing" can basically be put away.

But then Powell threw out a heavy hitter: a $40 billion asset purchase plan! Note that this is not traditional quantitative easing, but a temporary operation targeting short-term U.S. Treasuries, aimed at alleviating liquidity tensions in the overnight lending market. Although time-limited, this news indeed exceeded expectations and immediately ignited bullish sentiments in the crypto and U.S. stock markets. Mainstream coins like ETH, BTC, and SOL instantly rallied, and market sentiment became lively.

Basically, this meeting gave a short-term positive boost. A rebound is certain, but how long can it last? Without sustained rate cuts as support, whether this rebound has enough momentum depends on subsequent economic data. Don’t get carried away and realize only after the good news has been digested that it was just a false alarm.