#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 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
- Bank of America predicts two additional quarter-point cuts in June and July 2026
- The Fed's dot plot shows a wide range of views among policymakers, with 12 of 19 members projecting at least one more rate cut next year
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