Fed Outlook 2026: Rate Forecasts And Fixed Income Strategies
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BlackRock5.07K FollowersFollow5ShareSavePlay(16min)CommentsSummaryWe believe the most likely path for Fed policy in 2026 is for the central bank to bring rates down from the current range of 3.50% to 3.75% to closer to 3% over the course of the year.Ultimately, Fed policy in 2026 will depend on economic data, particularly on inflation and the labor market.
But Fed Chairman Jay Powell’s term expires in May 2026 and a potential new chair may result in some uncertainty.Given the expected path of Fed policy, we see opportunities for investors in the belly of the yield curve, managing interest rate risk with bond laddering and seeking higher income outside of core bonds. Alex Cristi /iStock via Getty Images By Karen Veraa-Perry, CFA What’s our outlook for Fed policy in 2026? At its final meeting of 2025, the Federal Reserve cut interest rates by 25 basis points to a range of 3.50% to 3.75%; theThis article was written byBlackRock5.07K FollowersFollowBlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.