Moody's: Fed rate cuts are expected next year, but patience is needed.
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TL;DR
Moody's warns that potential Fed rate cuts in 2026 signal a fragile economy, not prosperity, with cautious easing expected due to weak job growth.
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Moody'sFed rate cutsfragile economyjob growthinterest rates
Odaily Odaily reports that Moody's chief economist has warned that while multiple interest rate cuts are possible in 2026, this is not a sign of prosperity, but rather indicates the economy is in a "fragile equilibrium." This unusual combination points to a gradual, cautious interest rate path rather than an aggressive rate-cutting cycle. Data from the U.S. Bureau of Labor Statistics (BLS) shows that only 64,000 jobs were added in November 2025, with the agency noting that the "net change" in employment figures since April has been "minimal." (Jinshi)