🚹 BREAKING: Fed Could Slash Rates Aggressively in Early 2026 đŸ‡ș🇾

Moody’s Analytics Chief Economist Mark Zandi says the Federal Reserve may be forced into faster and deeper rate cuts than markets expect.

🔍 What’s driving it:

‱ Weak labor market conditions

‱ Ongoing inflation uncertainty

‱ Political and policy-related pressures

📉 Zandi’s forecast:

‱ 3 rate cuts in H1 2026

‱ 25 bps each, totaling 75 bps

‱ Much more aggressive than current Fed and market projections

🧠 His reasoning:

Zandi believes businesses will delay hiring until they’re confident trade, immigration, and policy risks won’t surprise them. Until then:

→ Job growth stays weak

→ Unemployment keeps rising

→ Fed responds by cutting rates

“As long as unemployment continues to climb, the Fed will cut,” Zandi emphasized.

⚠ This outlook is far more dovish than official guidance, signaling a potential macro shift markets may not be fully pricing yet.

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