We had another interest rate cut this week, and the Fed indicated that (right now) it sees only one for all of 2026.
Of course, all of that may fly out the window if a person such as Kevin Hassett succeeds Fed chair Jerome Powell in May of next year.
(Hassett is seen as a guy who will do whatever it is to push through Trump’s agenda— and Trump wants interest rates to be closer to 1%).
The Fed increased its projected change in real GDP for 2026 to 2.3%, up from 1.8% in September, but the unemployment rate to stay the same at 4.4% — and 4.2% in the longer run (out to 2028).
Inflation projected to stay contained: PCE at 2.4% and Core PCE at 2.5%.
[Screen shot from CBS News 24/7 program ‘The Takeout with Major Garrett’]