Galaxy Securities: The US Still Has Room for About Three Interest Rate Cuts in 2026

Deep Tide TechFlow news, on December 25, according to Golden Ten Data, Galaxy Securities pointed out that, due to the higher-than-expected economic growth rate, CME observation data shows that the probability of an interest rate cut in January 2026 has narrowed compared to before. After the data was released, Hassett, a popular candidate for Federal Reserve Chair, stated that the foundation for growth still comes from falling prices, income growth, and improved sentiment. He also made it clear that if GDP growth remains around 4%, new employment is expected to return to the range of 100,000 to 150,000 per month. At the same time, he bluntly said that the Federal Reserve is obviously lagging behind the situation regarding interest rate cuts. We believe that the economic growth in the third quarter mainly reflects the fading impact of inventory and trade disturbances, which is not enough to change the marginal weakening trend in employment. With employment becoming the focus of policy trade-offs and the selection of the Federal Reserve Chair gradually being finalized, there is still room for about three interest rate cuts in 2026.