#FedWatch The Federal Reserve is expected to cut interest rates once in 2026, with the median policymaker projecting a quarter-percentage-point cut. The Fed's target for the funds rate is expected to be around 3.4% by the end of 2026. Economists are divided, with some predicting two rate cuts in 2026, likely arriving later in the year ¹ ² ³.
*Key Factors Influencing the Fed's Decision:*
- _Inflation_: Expected to slow to around 2.4% by the end of 2026
- _Economic Growth_: Projected to accelerate to 2.3% in 2026
- _Unemployment Rate_: Expected to remain at a moderate 4.4%
*Expert Predictions:*
- Goldman Sachs expects two 25-basis-point cuts in March and June 2026
- Bankrate's 2026 Interest Rate Forecast projects three more cuts totaling 0.75 percentage point in 2026.
