Delphi Digital has indicated that the Federal Reserve is expected to cut interest rates by 25 basis points in December, bringing the federal funds rate to approximately 3.5% to 3.75%. The forward curve suggests at least three more cuts by 2026, potentially lowering rates to around 3% by the end of that year. Additionally, December 1 marks the end of quantitative tightening, with the Treasury General Account shifting to consumption and the reverse repurchase agreements being depleted, creating the first net positive liquidity environment since early 2022. Delphi Digital notes that by 2026, policy conditions may shift from a headwind to a mild tailwind.