Economists believe that the Fed is likely to announce interest rate cuts at the upcoming meeting. This expectation stems from a gradual slowdown in the labor market and a faster-than-expected cooling of inflation in the services sector. The market's expectations for interest rate reductions and a weaker dollar are gradually easing the financial environment, which could provide sustained support for the economy in 2026.

Recently, the economic policy of the U.S. government seems to revolve around two main directions: increasing revenue and cutting costs. Cost-cutting is reflected in the withdrawal from multiple international organizations and groups, and even the dissolution of the U.S. Agency for International Development; increasing revenue is mainly achieved through tariff adjustments and legislation related to stablecoins, aimed at alleviating the U.S. debt burden.

It is worth noting that although negative events such as increased tariffs often lead to a decline in consumer and business confidence, once policy adjustments are made and soft data hits bottom, the stock market may begin to rebound even in the face of deteriorating hard data. This year's economic situation is exactly that, as policymakers have implemented some painful measures that are not likely to end the economic cycle.

Another point of interest is the recently passed economic stimulus bill. This bill injects new vitality into the economy through progressive tax cuts and corporate spending provisions. Analysts have pointed out that tariff revenue will offset most of the deficit increase brought by this bill. In other words, the current economic pain may pave the way for future growth, with the positive effects of tax cuts expected to become apparent in early 2026.

In addition, the government's ongoing push for deregulation measures may also have a positive impact on the economy. Market participants are closely monitoring these policy changes, hoping they will provide support for future economic growth.