Institution: US Still Has About 3 Interest Rate Cut Room in 2026

BlockBeats News, December 25th. Galaxy Securities pointed out that due to the impact of economic growth exceeding expectations, CME observation data shows that the probability of a rate cut in January 2026 has converged compared to before.

After the data was released, popular Federal Reserve Chair candidate Hassett stated that the growth foundation still comes from price declines, income growth, and improved sentiment. He explicitly pointed out that if the GDP growth rate remains around 4%, new job additions are expected to return to the range of 100,000 to 150,000 people per month. He also bluntly stated that the Fed is significantly behind the situation on the rate cut issue.

The third-quarter economic growth mainly reflects the dissipation of inventory and trade disturbances, which is not enough to change the trend of weakening job growth at the margin. With employment becoming the focus of policy considerations and against the backdrop of the gradual settlement of the Federal Reserve Chair candidacy, there are still about three rate cuts in 2026. (Jin10)