Federal Reserve Set for Cautious Rate Cuts in 2026

2 mins mins

Key Points:

Mark Zandi predicts Federal Reserve cuts due to economic balance.
No aggressive cutting expected, cautious approach is likely.
Inflation near 3% complicates rapid policy changes.

Mark Zandi, Moody’s Analytics’ chief economist, predicts the Federal Reserve will reduce interest rates in 2026 amid moderate economic growth and inflation challenges.

His forecast highlights ongoing economic uncertainties, signaling a cautious approach by the Federal Reserve, potentially influencing investor sentiment and financial markets globally.

Federal Reserve Eyes Rate Cuts Amid 3% Inflation

Mark Zandi, speaking on CNBC’s ‘Squawk on the Street’, highlighted that expected Federal Reserve interest rate cuts in 2026 are linked to subdued economic growth, inferring a cautious rather than aggressive approach. Zandi projected at least two rate reductions as the Fed responds to a delicate economic landscape.

Public statements from Zandi, acknowledging a two-sided risk in future rate paths, emphasize the complex balancing act the Fed faces. Reactions from financial markets have been muted, with no direct crypto comments as leaders have remained silent.

“The Federal Reserve is likely to implement at least two interest rate cuts in 2026, driven by subdued economic growth around 2% GDP and weak job creation.” – Mark Zandi, Chief Economist, Moody’s Analytics

Ethereum Market Reacts to Fiscal Policy Speculations

Did you know? Mark Zandi’s perspectives often align with cautious Fed policy shifts, suggesting that historical inflation pressure frequently leads to more gradual adjustments in fiscal activity, potentially impacting broader asset classes.

Ethereum (ETH) is currently valued at $2,967.93 with a market cap of $358.21 billion, maintaining 12.00% dominance. Over the past 24 hours, it trades at 0.95% higher with a substantial 25.68% increase in trading volume as per CoinMarketCap data. Despite some gains, ETH suffered declines of 29.87% over 60 days and 26.18% over 90 days.

ethereum-daily-chart-2333 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 05:44 UTC on December 26, 2025. *Source: CoinMarketCap*

*Expert insights from the Coincu research team* hint that the sustained nature of global inflation might necessitate ongoing adjustments in fiscal policy, influencing cryptocurrency and technology sector activities in the subsequent quarters. For detailed analytics on Ethereum, refer to Lookonchain analytics and insights on Ethereum data.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.