TechFlow, on December 24, BlackRock strategists Amanda Lynam and Dominique Bly noted in a report that the Federal Reserve is expected to implement only limited rate cuts by 2026. With a total of 175 basis points in rate cuts already accumulated in this cycle, the Fed is approaching neutral interest rate levels. Unless the labor market deteriorates sharply, there is little room for further rate cuts in 2026. According to data from LSEG, markets currently anticipate two rate cuts by the Fed in 2026. (Jinshi)
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