Federal Reserve Projects Single Rate Cuts in 2026 and 2027

The Federal Reserve’s latest dot plot shows expectations for one 25 basis point cut in each of the two years.

DOT

Summary

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Terms & Concepts
  • Federal Reserve: The central bank of the United States, responsible for setting monetary policy, including interest rates.
  • Dot plot: A chart released by the Federal Reserve showing policymakers’ projections for future interest rates.
  • Basis point: A unit of measure for interest rates equal to 0.01%, used to describe rate changes.