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.