According to BlockBeats, BlackRock strategists Amanda Lynam and Dominique Bly have indicated in a report that the Federal Reserve is anticipated to implement only limited rate cuts in 2026. With a cumulative reduction of 175 basis points in the current cycle, the Federal Reserve is nearing a neutral interest rate level. Further rate cuts in 2026 are expected to be quite limited unless there is a significant deterioration in the labor market.
Data from LSEG suggests that the market currently anticipates two rate cuts by the Federal Reserve in 2026.