BlackRock: Fed's 2026 Rate Cut May Be Limited

BlockBeats News, December 24th, in a report, BlackRock strategists Amanda Lynam and Dominique Bly pointed out that the Federal Reserve is expected to only implement a limited rate cut in 2026. With a cumulative rate cut of 175 basis points in this cycle, the Federal Reserve is approaching the neutral interest rate level. Unless there is a sharp deterioration in the labor market, the space for further rate cuts in 2026 is quite limited.

According to LSEG data, the market currently expects the Federal Reserve to cut interest rates twice in 2026. (FX678)