Will the Federal Reserve Cut Rates Again in 2026? Market Expectations, Inflation Trends, and Investor Outlook
The Federal Reserve enters 2026 at a critical juncture for monetary policy. After two rate cuts in late 2025, markets are now focused on whether the central bank will continue easing or pause amid lingering inflation pressures. With the U.S. economy showing mixed signals—slowing growth, stabilizing inflation, and softening labor momentum—the direction of the Fed’s next move carries major implications for global markets, corporate earnings, and investor positioning.