CITIC SEC states that the Federal Reserve's rate cut of 25bps at the December 2024 meeting met market expectations. The latest dot plot shows the target interest rate center for next year is 3.9%, higher than the 3.4% shown at the September 2024 meeting, while also raising forecasts for inflation and economic growth for next year, and lowering the unemployment rate forecast. Powell's remarks did not provide clear guidance on the 'magnitude and timing' of future rate cuts, though he expressed strong confidence in economic growth. From the SEP and Powell's remarks, the Fed has evident concerns about inflation next year; this meeting was much more hawkish than market expectations. However, it is consistent with our view that the Fed will cut rates twice in 2025. We continue to maintain this view and expect the Fed will likely pause rate cuts in the next meeting to observe, possibly needing to wait until March's meeting to provide clearer guidance, with increased volatility expected in the US stock market.