As was widely expected, the Federal Open Market Committee (FOMC) implemented another 25-basis-point (bp) rate cut at the December FOMC meeting, bringing the new Fed Funds trading range down to 3.50%–3.75%. With the resumption of rate cuts now at round three, and Chairman Powell referencing the resumption of rate cuts as a “risk management” approach, the more pertinent questions are: what will the Fed have in store for the markets in 2026, and will the voting members recalibrate the “recalibration”? If you may recall, when the FOMC began this rate-cut cycle back in September 2024, Chairman Powell referred to it as a ... (full story)