Mark Zandi, Chief Economist at Moody's Analytics, has provided insights into the Federal Reserve's potential monetary policy adjustments, highlighting the challenges facing the labor market and inflation. His analysis suggests that these factors may lead to significant interest rate cuts in early 2026. The source notes that these changes could have far-reaching implications for the economy.
Predictions for Federal Reserve Interest Rate Cuts
Zandi predicts that the Federal Reserve could implement three consecutive 25 basis point cuts in interest rates during the first half of 2026. He emphasizes that the primary driver for this anticipated monetary easing is the ongoing weakness in the job market, particularly as the year begins.
Impact of Trade and Immigration Policies on Job Market
The economist points out that uncertainties surrounding trade and immigration policies are causing delays in hiring decisions among companies. As a result, job growth is expected to remain sluggish until these issues are addressed. This further complicates the economic landscape and influences the Fed's decision-making process.
On January 3, 2026, US stock markets closed higher, contrasting with the prevailing fear in the cryptocurrency sector. For more details, see the full report on the market's performance here.
