Economist Mark Zandi sees the Fed surprising with three rate cuts in first half of 2026

• Labor market weakness, uncertainty about inflation and political pressure will push the Fed to lower rates aggressively in the early part of 2026, according to Moody’s Analytics economist Mark Zandi.
• Zandi’s forecast is at least a step ahead of both market and Fed expectations, both of which point to a slower pace of reductions.

Labor market weakness, uncertainty about inflation and political pressure will push the Federal Reserve to lower interest rates aggressively in the early part of 2026, according to Mark Zandi, chief economist at Moody’s Analytics.

Though markets and Fed officials themselves see only modest easing in the year ahead, Zandi expects the central bank to enact three cuts of a quarter percentage point each before midyear.

Source: https://www.cnbc.com/2025/12/31/economist-mark-zandi-sees-the-fed-surprising-with-three-rate-cuts-in-first-half-of-2026-.html