BREAKING BREAKING BREAKING 💡
FED RATE CUT FORECAST 2026 👀
GOLDMAN SACHS ✨️ MORGAN STANLEY
Current projections for 2026 suggest the Federal Reserve will implement one or two additional rate cuts, bringing the federal funds rate down to a target range of approximately 3.0% to 3.4% by year-end, from the current 3.50% to 3.75% range.
The outlook for the federal funds rate in 2026 is primarily data-dependent, with most forecasts pointing to a continued, albeit gradual, easing of monetary policy. The policy decisions will largely depend on the trajectory of inflation and the labor market.
Federal Reserve (FOMC) Projections: The median projection from the Fed's December 2025 "dot plot" indicates an end-of-2026 federal funds rate of 3.4%, implying a single 25 basis point (0.25%) cut for the year. There is a wide range of opinion among policymakers, with some expecting no cuts and others foreseeing multiple reductions.
Market Expectations: Futures markets, as of December 18, 2025, imply a gradual easing path, with the rate expected to trough around 3.0% by late 2026. This suggests markets are pricing in a slightly more aggressive cutting cycle than the official Fed median forecast.
Economist Forecasts: Projections from major financial institutions vary:
Goldman Sachs expects the Fed to reduce the policy rate by 50 basis points (0.50%) to a range of 3.0% to 3.25% in 2026, with cuts in March and June.
Morgan Stanley forecasts a rate in the 3.0% to 3.25% range, followed by an extended pause.
Some strategists, such as those at Bernstein
Private Wealth Management, anticipate as many as four cuts in 2026.
Other economists expect only one or two additional cuts, with an end-of-year range closer to 3.25% to 3.5%.
ATTENTION SIGNAL ALERT 💡✈️
$FOLKS 🌟
PRICE REACHED SUPPORT AREA 📈✅️
BULLISH SENTIMENT COMING 📈✅️
PROFIT UP TARGETS VERY BIG $46 ✈️
LOOKING FOR LONG POSITION 👀
#Fed #SEC #fomc #cpi #USJobsData
{future}(FOLKSUSDT)