Fed Swaps Indicate Expectation of 50 Basis Points Easing in 2026

Market pricing in U.S. Federal Reserve interest rate swaps points to a potential 0.50% cut in 2026.

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Terms & Concepts
  • Federal Reserve (Fed): The central banking system of the United States, responsible for setting monetary policy, including interest rates.
  • Basis Point: A unit equal to 0.01%, often used to describe changes in interest rates.
  • Interest Rate Swap: A financial derivative where two parties exchange interest payment obligations, often used to hedge or speculate on rate movements.