Next Wednesday (December 10) could become a watershed moment for the financial markets.

Everyone is eyeing the Fed’s 25 basis point rate cut—that’s already 100% priced in by the market. But the real focus isn’t there; it’s on whether Powell will simultaneously announce a $45 billion short-term Treasury purchase plan. Sound familiar? That’s right, a mini version of QE is about to make a comeback.

Let’s go back to October. At that time, the Fed had quietly halted quantitative tightening (QT), yet market liquidity remained tight. The hole left by the government shutdown drama needs to be filled by someone, or else the economy could stall at the start of 2026. So this bond purchase isn’t just icing on the cake—it’s an emergency measure.

White House economic adviser Hassett recently painted a rosy picture: 2026 will be “the golden year in US economic history.” He thinks even 3% growth is too modest for this vision, boldly calling for a 4%+ target. Of course, that’s assuming “no black swans”—but let’s be honest, when do black swans ever give a warning?

The market is already voting with its feet. US stock futures are up 0.4%, and the Nasdaq is just a breath away from its all-time high. The 10-year Treasury yield has dropped below 3.92%, with capital flowing into safe assets. The dollar index is heading straight for 102, so the RMB might come under some short-term pressure. Even the European Central Bank can’t sit still—the odds of a rate cut there are surging.

Emerging markets had a brief celebration—after all, when dollar liquidity loosens, hot money tends to flow outward. But don’t get too excited; the ghost of inflation is waking up. Throwing money around feels good, but no one can escape the aftereffects.

For the crypto market, this move is a double-edged sword. Loose liquidity theoretically benefits risk assets like BTC and ETH, but if inflation expectations spiral out of control, risk-off sentiment could actually drag down token prices. So whether this means a “continued bull market” or “a peak and pullback,” it all depends on next Wednesday’s press conference.

Hassett is on stage painting a golden era, while Powell is backstage getting ready to open the floodgates. Will 2026 be true prosperity or a giant bubble? The answer might just lie in that $45 billion. We’ll find out next Wednesday.