Core Points - The Federal Reserve is expected to announce a 25 basis point interest rate cut during the upcoming FOMC meeting, with significant focus on when the Fed will stop reducing its $6.6 trillion balance sheet and the possibility of another rate cut in December [1] - The end of the tightening cycle may shift the Fed's policy focus from "controlling inflation" to "stabilizing employment" as the balance sheet reduction and rate cuts are likely to proceed in tandem [1] - Attention is also turning towards the modernization of payment systems and the construction of a digital financial ecosystem, highlighted by the proposal for a "streamlined master account" to allow certain non-bank payment institutions direct access to the Fed's payment systems [1][2] Group 1 - The probability of a rate cut at the upcoming FOMC meeting is very high, indicating a potential shift in monetary policy [1] - The proposal for a "streamlined master account" represents the Fed's first institutional-level support for the "narrow banking" model, aiming to separate payment functions from credit creation [2] - This initiative could facilitate the integration of stablecoins and real-world asset tokenization into mainstream financial infrastructure [2]