A recent report indicates that the Federal Reserve's eventual rate cut might surpass market expectations. According to ChainCatcher, the report highlights that while the Fed may struggle to reduce its balance sheet in the short term, the threshold for expanding the balance sheet and quantitative easing has increased. This could lead to monetary-fiscal coordination through larger rate cuts and the issuance of short-term Treasury bonds. The steepening of the U.S. Treasury yield curve is expected to benefit American bank stocks.