U.S. Interest-Rate Futures See Two 2026 Cuts After Jobs, Retail Sales

U.S. interest-rate futures (derivatives tied to policy rates) still imply two cuts in 2026 after jobs and retail sales data, pricing 58 basis points (one-hundredth of a percent) of easing next year.

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Terms & Concepts
  • Interest-rate futures: Exchange-traded contracts that reflect market expectations for future central bank policy rates.
  • Basis points: A unit equal to 0.01%, used to describe interest rate changes.
  • Easing: Monetary policy that reduces interest rates to stimulate economic activity.