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Fed Projects Rate Cut in 2026

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Created December 11, 2025

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Video Transcript

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Breaking news: The Federal Reserve stands firm on its projection of a lone rate cut in

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2026, mirroring its earlier forecast. By the end of 2026, the federal funds

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rate is expected to dip to 3.4%, slightly down from the present 3.5%-3.75%. Just recently,

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the Fed trimmed its key overnight borrowing rate by 0.25%, marking the third

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reduction this year. The decision sparked debate, with three members pushing for a deeper

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cut and some officials opposing any cuts for next year. Looking ahead to 2027,

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the Fed predicts a terminal rate of 3.1%, with a steady outlook for 2028.

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