Traders Say the Fed Rate Outlook for 2026 Will Have the Most Market Impact Today

Traders say the Fed rate outlook for 2026 will have the most market impact today

In September, when the Fed last issued its 'summary of economic projections,' the central bank anticipated only one rate cut in 2026.

2026 Rate Cut Outlook (Not Good)

Now that today’s interest rate decision is settled, investors are already starting to look to the future — and the potential for even more rate cuts to come our way in the early months of 2026. But don’t hold your breath… Because the latest economic data seems to indicate the economy is actually roaring. And that means interest rates could be holding steady into the foreseeable future. Click the video below for the full story in today’s episode …

All Eyes on Fed Decision - Rate Cut Priced in, 2026 Outlook Uncertain - ActionForex

In the US, today's main event will be the FOMC's rate decision. We expect a 25bp cut to the policy rate target, in line with consensus and market pricing. We expect Powell to verbally push back against continuation of sequential rate cuts in early 2026. The updated rate projections, or 'dots', will likely reflect varied views within the FOMC, while macroeconomic projections will see only cosmetic changes. The Fed may also take further steps to s…

All eyes on Fed decision - Rate cut priced in, 2026 outlook uncertain

In China, November CPI came in as expected at 0.7% y/y, reaching a 21-month high driven largely by food prices. Core inflation held steady at 1.2% y/y, while PPI remained stuck in deflationary territory at -2.2% y/y (cons: -2.0%).

Here’s What to Expect From Wednesday’s Fed Rate Decision

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