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The Outlook for Fed Rate Cuts in 2026
While it’s likely the US Federal Reserve will cut rates in December, the outlook for monetary policy in 2026 is harder to discern. Goldman Sachs Research’s “working assumption” is that the policymakers will slow the pace of easing in the first half of next year as economic growth reaccelerates and inflation cools. The much-delayed jobs report for September showed signs of a cooling labor market, and may have sealed a 25-basis-point cut at next month’s meeting of the Federal Open Market Committee (FOMC), writes Jan Hatzius, Goldman Sachs Research’s chief economist, in the team’s latest “Global Views” ... (full story)
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