ATTENTION MARKETS: THE FED MAY HALT CUTS IN 2026
BlackRock focuses on what many do not want to hear. Its strategists Amanda Lynam and Dominic Bly warn that rate cuts in 2026 would be minimal, not aggressive.
What is the reason?
The Federal Reserve has already reduced 175 basis points in the current cycle, getting closer to what is considered a neutral rate. From there, the room for maneuver becomes limited.
What could change the outlook
Only a strong and unexpected deterioration in the labor market would justify deeper cuts next year.
According to recent data from LSEG, the market barely discounts two rate cuts in 2026, reinforcing a scenario of more cautious monetary policy.
Simple translation: the era of easy money is not guaranteed.
Stay alert, because these types of signals often move stocks, bonds, and crypto.
