Economists expect the Federal Reserve to cut interest rates in December 2026 and possibly cut rates two more times after that.

According to a survey of economists, Federal Reserve officials are expected to vote next week on another interest rate cut to guard against the increased risk of a sharp deterioration in the labor market. The median among respondents indicates that it is expected that the Fed will implement two more 25 basis point rate cuts starting in March 2026. The rate cut next week will continue the momentum of rate cuts seen in the September and October policy meetings. A significant majority also predict that Fed officials will once again emphasize the statement that "the downside risks to employment have risen in recent months," as they did in October. The Fed will announce its decision on December 10th at 2pm Washington time, followed by a press conference by Chairman Jerome Powell.