Analyst Predicts Fed Cuts in December & 2026; ‘Clearest Year’ Looms

Kevin Hassett, Chairman of the White House National Economic Council, is a leading contender for the next US Federal Reserve (Fed) Chair. As Donald Trump announces his Fed candidate at the beginning of 2026, market attention focuses on the December Fed interest rate decision. With limited data to guide them, analysts anticipate a 25 basis point cut from the Fed in December, according to CME FEDWatchToll, with only 13% predicting no change. Delphi Digital predicts another 25 basis point reduction in December, lowering rates around 3.50-3.75%. They further anticipate at least three more rate cuts in 2026, driving interest rates below 3% by the end of the year.