What FOMC's Projections Tell Us About Rate Cuts, Inflation, And Unemployment
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APAC Investment News796 FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe Federal Reserve is signaling only one rate cut for 2026, but a new Chair may drive more cuts, especially post-Powell.FOMC projections show tolerance for PCE inflation above 2% through 2027, prioritizing employment over strict inflation targets.Despite moderate inflation, the Fed has cut rates and may continue if labor market weakness emerges, especially under new leadership.Upcoming political dynamics and the 2026 midterms could suggest continued focus on the health of the labor market. Douglas Rissing/iStock via Getty Images Tepid remarks after the October FOMC meeting, with Federal Reserve Chair Jerome Powell warning that there were no guarantees, cast doubt on the prospect of further rate cuts. Yet the Federal Reserve came through with another quarter-point rate cut in December, and despite elevatedThis article was written byAPAC Investment News796 FollowersFollowMarkets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which in turn could pave the way for many useful investment insights. As society and technologies evolve, companies and other stakeholders will seize advantages. Figuring out which companies will take the best advantage of any given opportunities is not easy. I am especially interested in macrotrends, futurism, and increasingly, emerging technologies. However, as far as investing is concerned, it’s crucial to pay attention to the fundamentals, quality of leadership, product pipeline, and all the other details. In recent years, I have focused on marketing and business strategy, primarily for medium sized companies and startups. I have worked in international development, including overseas for a foreign Prime Minister’s office, as well as non-profit work in the United States. Among other tasks, I evaluated startups and emerging industries/technologies. I have also moonlighted as a technology and economic news journalist. Now I’m looking to tie everything together. While my personal interests will always keep megatrends and technological developments in mind, I do believe fundamentals and technicals are vital to uncovering opportunities.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You