Fed Predicts Slow Inflation, One Rate Cut in 2026
Update: 2025-12-11
Description
The Federal Reserve has announced a quarter-percentage-point interest rate cut for 2026, aligning with their September forecast. They predict inflation to decrease to 2.4% by the end of next year, while the economy grows at a 2.3% rate and unemployment remains at 4.4%. The Fed will closely monitor incoming data before making further adjustments. The decision was not unanimous, with three members disagreeing. The future of monetary policy hinges on new data, especially as the nation approaches a midterm election year. The Feds latest projections were made without recent job and inflation reports, relying on internal surveys and private data.
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