Moody's chief economist Mark Zandi indicated that the Federal Reserve might implement multiple rate cuts in 2026, driven by a fragile economic environment rather than robust growth. Speaking on December 26, Zandi highlighted that inflation remains above the Fed's 2% target, with the U.S. Consumer Price Index (CPI) at 2.7% year-on-year as of November 2025. Zandi emphasized the importance of regulatory policy in shaping the Fed's cautious approach to rate adjustments. He also noted that efforts to counter the financing of terrorism could indirectly impact broader financial stability, adding complexity to the Fed's decision-making process regarding interest rates.