Moody's Analytics Chief Economist Mark Zandi forecasts that the Federal Reserve will implement three interest rate cuts in early 2026 due to a weak labor market and inflation uncertainties. Zandi anticipates each cut will reduce rates by 25 basis points, contrasting with the market and Fed officials' expectations of moderate easing. He cites the need for companies to gain confidence in changing trade and immigration policies before resuming hiring, which will keep job growth insufficient to curb rising unemployment rates.