BlackRock: The Federal Reserve's Rate Cuts in 2026 May Be Limited
BlackRock strategists Amanda Lynam and Dominique Bly noted in a report that the Federal Reserve is expected to implement only limited rate cuts in 2026. With a cumulative rate cut of 175 basis points in this cycle, the Federal Reserve is approaching neutral interest rate levels. Unless there is a sharp deterioration in the labor market, the room for further rate cuts in 2026 is quite limited. According to LSEG data, the market currently expects the Federal Reserve to make two rate cuts in 2026.
