The Federal Reserve’s final policy meeting of the year is expected to end with an interest rate cut, but all eyes will be on Federal Reserve Chairman Jerome Powell’s outlook for 2026.
Monetary policymakers will gather for their Dec. 9—10 Federal Open Market Committee meeting, where they will decide on the benchmark federal funds rate and provide their outlook for next year.
Investors overwhelmingly anticipate that Fed officials will vote to lower rates by a quarter point, shifting the target range from 3.75 to 4 percent to 3.5 to 3.75 percent, according to the CME FedWatch Tool.
If the rate-setting committee follows through on a cut, it would represent the third consecutive reduction to the policy rate, suggesting that the central bank is entrenched in an easing cycle….