Fed Officials Divided on 2026 Interest Rate Cuts
Update: 2025-12-12
Description
Federal Reserve officials are deeply divided on the economic outlook for 2026, with varying views on interest rate cuts. While the median projection suggests one cut, individual forecasts range from no cuts to two. The next Fed chair will face significant policy uncertainty, as the committee is divided on borrowing costs. Despite internal disagreements, officials project steady growth, easing inflation, and a slower pace of rate cuts after 2025. The Fed recently implemented its third rate cut this year, but some officials dissented, arguing for deeper cuts or holding rates steady. The central bank faces a challenging environment, balancing maximum employment and price stability goals.
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