The Federal Reserve is almost certain to cut rates twice more in 2025, but the outlook for rate cuts in 2026 remains uncertain.

According to ChainCatcher, citing Golden Ten Data, John Luke Tyner, Head of Fixed Income at Aptus Capital Advisors, stated that considering the Federal Reserve's shift to focus on the labor market and signs of easing price pressures, it is almost certain that the Fed will cut rates twice more in 2025. However, entering 2026, the sustainability of the rate-cutting cycle will be questioned. The market expects the Fed to cut rates about three times in 2026, bringing the federal funds rate down to around 3%.