【4E: The Federal Reserve Slashes Interest Rate Expectations, Causing Global Markets to Collapse】On December 19, news broke that the Federal Reserve announced a scheduled interest rate cut of 25 basis points on Wednesday, but significantly raised future policy rate expectations and inflation expectations, predicting only two rate cuts totaling 50 basis points next year, halving previous expectations. According to 4E monitoring, after the release of the Federal Reserve's dot plot and economic outlook summary, risk aversion sentiment surged sharply, causing all three major U.S. stock indices to decline. The S&P 500 index closed down 2.95%, the Dow Jones fell 2.58%, marking its longest losing streak since 1974 with ten consecutive days of losses, while the Nasdaq dropped 3.56%. Tesla fell over 8%, leading the decline among tech giants. Cryptocurrency-related stocks also fell broadly, with MSTR down 9.52% and Coinbase down 10.2%. The Federal Reserve's actions caused a collapse in the U.S. stock market, leading to a significant pullback in the cryptocurrency market. BTC fell below $100,000, with Powell's statement that 'the Federal Reserve does not allow nor intends to hold Bitcoin' intensifying market selling pressure, resulting in a Bitcoin decline of up to 6.2%, with a current price of $99,235 before press time. Ethereum briefly dropped to $3,542, with a decline of 7.27%, and altcoins generally experienced double-digit declines. In the past 24 hours, the total liquidation amount in the cryptocurrency market reached $842 million, deepening market panic. In the forex commodities sector, the Federal Reserve's aggressive cuts to interest rate expectations caused the dollar index to rise over 1% to a two-year high; gold prices fell over 1% to a one-month low; a decrease in U.S. crude oil inventories pushed up U.S. oil prices, but a slowdown in interest rate cutting dampened oil demand prospects, causing oil prices to rise and then gradually erase gains. The Federal Reserve's released 'dot plot' shows that it is expected to only cut rates two more times by 2025, which is more hawkish than the September dot plot forecast, leading to extreme market fear. Federal Reserve officials also anticipate two more rate cuts in 2026 and one in 2027. eeee.com is a financial trading platform supporting assets such as cryptocurrencies, stock indices, commodities like gold, and foreign exchange, recently launching a USDT stablecoin financial product with an annualized return of 5.5%, providing investors with potential hedging options. 4E reminds you to pay attention to market volatility risks and to allocate assets reasonably.

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