Will Today's Fed Rate Cut be the Last Until Summer 2026?
The Federal Reserve is expected to cut interest rates by a quarter of a percentage point, lowering the federal funds rate to a range between 3.75% and 4%.
What matters is Chair Jerome Powell's tone," says Nigel Green, CEO of deVere Group. "We expect him to sound more dovish, with the Fed going to shift from acting to waiting.
According to Green, this cut may be the last for some time, with the possibility of no further cuts until spring or summer 2026. The reason for this is the shifting balance of risks, as inflation has eased but growth has slowed sharply.
- Headline CPI is at 3%
- Core CPI is at 3%
Nigel Green's statement suggests that the Fed's focus will shift from taking action to waiting, given the current economic conditions.
Author's summary: Fed rate cut expected to be last until summer 2026.