A CNBC survey reveals that market participants anticipate only two rate cuts in 2026, despite the upcoming appointment of a new Federal Reserve Chair by Trump. The survey aligns with federal funds futures market pricing, suggesting that neither Wall Street nor economic forecasters expect significant reductions in the federal funds rate. The market predicts two 25 basis point cuts this year, totaling 50 basis points, with no further cuts expected in 2027. The federal funds rate is projected to stabilize at around 3% through 2027, contrary to Trump's call for rates to drop to 1%.
Market Expects Limited Fed Rate Cuts in 2026 Despite New Trump-Appointed Chair
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