BlockBeats news, December 25, Galaxy Securities pointed out that due to economic growth exceeding expectations, CME observation data shows the probability of a rate cut in January 2026 has narrowed compared to earlier forecasts.
After the data release, top candidate for Federal Reserve Chair Hassett stated that the foundation for growth still comes from falling prices, rising incomes, and improving sentiment, and clearly indicated that if GDP growth remains around 4%, new job additions are expected to return to the range of 100,000 to 150,000 per month, while also bluntly stating that the Federal Reserve is significantly lagging behind the situation on the issue of rate cuts.
Third-quarter economic growth mainly reflects the fading of inventory and trade disruptions, which is insufficient to change the trend of marginal weakening in employment; with employment becoming the focus of policy trade-offs, coupled with the gradual finalization of the Federal Reserve Chair candidate, there remains room for approximately 3 rate cuts in 2026. (Jin10)
