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Here's When the Federal Reserve is Expected to Cut Interest Rates in 2026, and What it Means for the

Here's When the Federal Reserve is Expected to Cut Interest Rates in 2026, and What it Means for the

January 06, 2026

Here's When the Federal Reserve is Expected to Cut Interest Rates in 2026, and What it Means for the Stock Market

Key Points

  • The U.S. Federal Reserve cut interest rates three times in 2025, which followed three cuts in 2024.
  • Inflation remains elevated, which would normally prevent further reductions, but the soaring unemployment rate is forcing the Fed's hand.
  • Most policymakers at the Fed foresee at least one more interest rate cut in 2026, while Wall Street is looking for two.

History suggests lower interest rates are great for stocks, but there's an important catch. Follow the link to read more from The Motley Fool. https://bit.ly/45ioyfl