Monetary Policy: The FOMC cut the federal funds rate three times in 2025 from "4-1/4 to 4-1/2 percent" at the beginning of 2025, to "3-1/2 to 3-3/4" at the end of the year. The mid-range on the "dot plot" suggests many FOMC participants expect around one to two 25 bp rate cuts in 2026. What will the Fed Funds rate be in December 2026? As of December, looking at the "dot plot", the FOMC participants see the following number of rate moves in 2026: This is a wide range of views. Goldman Sachs economists think there will be 2 rate cuts in 2026: "We expect the FOMC to compromise on two more 25bp cuts to 3-3.25% ... (full story)