economy
December 31, 2025
Economist Mark Zandi sees the Fed surprising with three rate cuts in first half of 2026
Markets and Fed officials themselves see only modest easing in the year ahead.
TL;DR
- Mark Zandi predicts aggressive Federal Reserve interest rate cuts in early 2026.
- This forecast is more aggressive than current market and Fed expectations.
- Reasons for the predicted cuts include a weakening labor market and political pressure.
- The President's potential to appoint new Fed members and his desire for lower rates could influence policy.
- Midterm elections may intensify political pressure on the Fed to lower rates.
Continue reading the original article