Group 1: Federal Reserve Actions - The Federal Reserve lowered the federal funds rate by 25 basis points to a target range of 3.5%-3.75% on December 11, 2025, as expected[2] - The Fed plans to purchase $40 billion in short-term Treasury bonds monthly starting in December to increase liquidity[3] - The GDP growth forecast for 2026 was raised by 0.5 percentage points to 2.3%, while the core PCE inflation forecast was lowered by 0.1 percentage points to 2.4%[3][13] Group 2: Market Reactions - Following the Fed's announcement, the Dow Jones Industrial Average rose by 1.0%, the S&P 500 increased by 0.7%, and the Nasdaq Composite gained 0.3%[4] - The 10-year Treasury yield fell by 5 basis points to 4.13%, and the 2-year yield decreased by 7 basis points to 3.54%[4] Group 3: Future Outlook - The Fed is expected to pause rate cuts in the first quarter of 2026, with potential cuts of 2-3 times from June to November 2026[3][19] - The second quarter of 2026 may present a good opportunity for Treasury bond investments as uncertainties are resolved[19]