The Fed’s latest cut looks less like a pivot and more like the opening move in a measured risk-on setup.

Dec 10, 2025: a 0.25% rate cut paired with Powell’s softer tone signals a pause in tightening — not a rush to stimulus.

three quiet drivers are setting up optimism for 2026:

1️⃣ Powell rules out further hikes for now

2️⃣ AI-led productivity growth is propping up the economy

3️⃣ a possible leadership shift toward a more dovish Fed

traders are treating the cut as the first spark, while insiders caution that liquidity is easing — not overflowing.

the Fed wants flexibility, not euphoria.

what this really sets up is a controlled macro bull cycle, where risk assets climb on momentum and positioning, not mania.

a slow burn, not a runaway rally.