Fed Rate Cuts in 2026: Limited Easing Ahead? BlackRock Weighs In 👀
BlackRock strategists Amanda Lynam and Dominique Bly just dropped a clear signal: the Fed is approaching neutral rates after 175 bps of cuts this cycle, with the current fed funds range at 3.50–3.75%.
Their take? Rate cuts in 2026 will likely be limited—unless the labor market cracks hard (not their base case). The reason: growth is expected to reaccelerate in 2026, keeping the Fed cautious about easing too much, too fast.
What the market vs. the Fed is saying:
📊 Market pricing (LSEG & futures): ~2 cuts in 2026
🏦 Fed dot plot: 1 cut (25 bps), taking rates to ~3.4%
Crypto angle for the Binance fam 🪙
“Lower for longer” rates can still support risk assets like BTC and altcoins
But fewer cuts than expected could cap upside, especially if Treasury yields stay elevated
Higher yields may also mean a stronger USD, which can pressure crypto in the short term
So the big question remains:
Is the “higher for longer” narrative making a comeback? Or will weak jobs data force the Fed’s hand into deeper easing?
Your take on 2026?
Bullish on crypto if the Fed pauses? Or do we need more cuts to fuel the next leg up? Drop your thoughts 👇
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