1. Report Industry Investment Rating - Not provided 2. Core Viewpoints - In the October 2025 meeting, the Fed cut interest rates by 25BP, lowering the policy rate to 3.75 - 4%, with two dissenting votes. The Fed also decided to end quantitative tightening (QT) in December [2]. - There are strong differences among Fed members regarding further rate cuts in December. The current rate is between 3 - 4%, close to most members' estimates of the neutral rate, leading to the divergence [2]. - The Fed's decision to end QT from December is due to factors such as the low ratio of reserve scale to GDP and signs of pressure on funding prices. Ending QT may bring downward pressure on interest rates and steepen the yield curve, but the impact may be limited [2][3]. - After the meeting, U.S. Treasury yields rose, the dollar index strengthened, and U.S. stocks were under pressure. Looking ahead, U.S. Treasury yields may face further upward pressure, and the possibility of a rate cut in December remains uncertain [3][4]. 3. Summary by Related Content Fed Meeting Decisions - In the October 2025 meeting, the Fed cut the policy rate by 25BP to 3.75 - 4%. Two members dissented: one advocated a 50BP cut, and the other opposed the cut. The Fed also decided to end QT on December 1 [2]. Reasons for Fed Divergence - Members have strongly differing views on further rate cuts in December. The current rate is in the 3 - 4% range, close to most members' estimates of the neutral rate. Some members think it's time to pause and observe the job market, while others advocate further rate cuts. This divergence was also shown in the September dot - plot [2]. Reasons for Ending QT - The ratio of reserve scale to GDP has dropped to 9.6%, a multi - year low. There are signs of pressure on funding prices, and the usage of the Fed's Standing Repo Facility (SRF) has increased significantly. The Fed's decision to end QT aims to make the weighted average duration of its investment portfolio closer to the market's [2]. Impact of Ending QT - Ending QT may lead to downward pressure on interest rates and a steeper yield curve, but the impact may be limited. Referring to previous events, the decline in 10Y U.S. Treasury yields was around 4BP and 7BP respectively, but the bond market may have been more influenced by other factors at that time [3]. Post - meeting Asset Price Movements - After the meeting, 2Y and 10Y U.S. Treasury yields rose by 9.4BP and 7.3BP respectively to 3.6% and 4.07%. The dollar index rose above 99 points, and U.S. stocks were under pressure [3]. Future Outlook - U.S. Treasury yields may face further upward pressure due to the improvement in recent employment data and the uncertainty of a rate cut in December. The market's pricing of a December rate cut may be relatively high [4].