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BlackRock Strategists Forecast Limited Fed Rate Cuts in 2026

BlackRock’s Amanda Lynam and Dominique Bly predict minor Fed reductions after a 175 basis point cut this cycle, with markets expecting two more barring labor market weakness.

Summary

BlackRock strategists Amanda Lynam and Dominique Bly foresee only modest Federal Reserve interest rate cuts in 2026, following 175 basis points already reduced during the current cycle. LSEG data shows market expectations for two further cuts unless the U.S. labor market declines sharply.

Terms & Concepts
  • Basis Point: A unit of measure equal to 0.01%, used in finance to describe interest rate changes.
  • Rate Cut: A reduction in a central bank’s benchmark interest rate, typically to stimulate economic activity.
  • Federal Reserve (Fed): The central bank of the United States responsible for setting monetary policy.