Market Anticipates Federal Reserve Policy Easing by 2026
Financial markets are increasingly pricing in expectations that the U.S. Federal Reserve will begin easing monetary policy by 2026, with interest rate cuts or reduced tightening seen as likely if inflation continues to soften and economic growth moderates.
From a money supply and liquidity perspective, anticipated policy easing tends to expand liquidity by lowering borrowing costs and encouraging credit growth. Increased liquidity can drive capital into risk assets, including equities and cryptocurrencies, as investors seek higher returns. This outlook supports broader market sentiment but remains sensitive to incoming economic data and inflation readings.