Fitch: Expects Fed to Cut Rates Twice in First Half, Unemployment to Stay at 4.6% This Year

By: theblockbeats.news|2026/01/08 14:46:02
0
Share
copy

BlockBeats News, January 8th, Fitch Ratings raised its 2025 U.S. GDP growth forecast and 2026 growth projection. This adjustment was made after incorporating economic data delayed due to last year's government shutdown. Fitch currently expects GDP to grow by 2.1% in 2025, higher than the 1.8% forecasted in its December 2025 Global Economic Outlook (GEO). At the same time, the growth forecast for 2026 has been revised upward from the previous report's 1.9% to 2.0%.

Given the incomplete data for October, recent CPI inflation trends have been difficult to interpret. It is estimated that the inflation rate rose to 3.0% in December 2025 (2.7% in November), and due to the delayed impact of tariff pass-through, it is expected to further increase in 2026, reaching an estimated 3.2% by the end of the year. With the slowdown in job growth offset by declining labor force growth, the average unemployment rate in 2026 is expected to be 4.6%, close to recent levels. We expect the Fed to cut interest rates twice in the first half of 2026, lowering the federal funds rate (upper limit) to 3.25%.

(FX678)

You may also like

America's First State-Backed Stablecoin FRNT: Can It Save Wyoming Amid Energy Slump?

Can this influx of digital income into "Cowboy State" really mend the rifts in this land?

WEEX Global AI Trading Hackathon Kicks Off: $1.88M Prize Pool Powers the Next Generation of AI Trading Champions

WEEX Labs, the innovation arm of WEEX, a leading global crypto exchange serving over 6.2 million users across 150+ countries, is set to kick off the preliminary round of its flagship global AI trading hackathon, AI Wars: WEEX Alpha Awakens, on January 12, 2026. Backed by the strong support of world-class sponsors including Amazon Web Services (AWS), the total prize pool has surged from $880,000 to an unprecedented $1,880,000, positioning AI Wars among the largest AI trading hackathons in the crypto industry. At the top of the leaderboard awaits an extraordinary champion prize — a Bentley Bentayga S, already on standby in Dubai, ready to be claimed by the ultimate AI trading victor.

Binance Launches Regulated Gold and Silver Perpetual Futures Settled in USDT

Key Takeaways: Binance has introduced its first regulated perpetual futures contracts, which are tied to traditional assets like…

Ledger Faces Yet Another Data Breach — Customer Information at Risk

Key Takeaways Ledger, the prominent hardware wallet manufacturer, has experienced another data breach via its payment processor, Global-e,…

If you are long on oil, Maduro's arrest is not good news

Venezuela has the world's largest oil reserves, with its conventional oil quality rivaling that of Saudi Arabia.

Court Sentences Criminal in Virtual Currency Fraud Case with Major Global Implications

Key Takeaways A landmark case in Beijing reveals a significant cross-border telecom and internet fraud scheme involving virtual…

Popular coins

Latest Crypto News

Read more