[The Federal Reserve May Cut Rates and End Balance Sheet Reduction, Market Risk Appetite Could Be Boosted] The Federal Reserve's policy committee may implement a 25 basis point rate cut on Wednesday and signal further easing measures, while announcing the end of its balance sheet reduction plan, which could exert downward pressure on Treasury yields. LHMeyer analyst Derek Tang stated that the dual action of rate cuts and prematurely halting balance sheet reduction would significantly support market risk appetite. Although there is still uncertainty about whether the balance sheet reduction will end this week, the recent tightening in funding markets has increased the likelihood of this decision.