Fed December Rate Cut Forecast: Delphi Digital Predicts 25bps Cut and 3+ Cuts in 2026

Source: CryptoNewsNet Original Title: Analysis Firm Announces Fed Interest Rate Forecast for December and 2026! “The Clearest Year!” Original Link: https://cryptonews.net/news/finance/32084339/ Kevin Hassett, the Chairman of the White House National Economic Council (NEC), has recently emerged as one of the leading candidates to head the next US Federal Reserve (Fed).

While Donald Trump is expected to announce his Fed presidential candidate at the beginning of 2026, markets are currently focused on the Fed’s December interest rate decision.

December Rate Decision

As the Fed prepares to announce its December interest rate decision, a 25 basis point cut is being priced into the markets. According to CME FEDWatch data, the Fed is priced in at 87% for a 25 basis point rate cut in December, while leaving rates unchanged is priced in at just 13%.

2026 Outlook and Liquidity Shift

Delphi Digital predicted in its latest analysis that the Fed will make another 25 basis point cut in December, bringing the federal funds rate to around 3.50-3.75%. Analysts at the firm predict that the forward curve will see at least three more rate cuts in 2026, with interest rates potentially falling below 3% by the end of the year.

The Clearest Policy Path in Years

The Fed’s interest rate path for next year is described as the clearest it has seen in years. Beyond rate cuts, several factors are creating a significant shift:

• The end of Quantitative Tightening (QT) on December 1st
• A decline in the NPL (Non-Performing Loans) rather than replenishment
• Full depletion of the RRP (Reverse Repurchase Program)

These combined factors constitute the first net positive liquidity environment since the beginning of 2022, marking a significant policy shift from negative to positive for 2026.