In 2026, the Federal Reserve moves like a stern watchman under pressure from the high offices above. Executive anxieties press on the doors of the chair, while the rumor mill-fed by Trump’s forthcoming choice for Jerome Powell’s successor-whispers of at least a 50 basis-point drain from the policy rate in the year ahead. 😏
Morgan Stanley and Citigroup Forecast More Fed Rate Cuts in 2026
According to client notes from Morgan Stanley (NYSE: MS) and Citigroup Inc. (NYSE: C), the Fed will set in motion at least two cuts of 25 basis points in 2026. Morgan Stanley, moving its calendar like a weather-worn map, replaced January and April with June and September 2026.
Citigroup also reshuffled its forecast, discarding January, March, and September for March, July, and September, hoping for as much as 75 bps of easing in 2026, a move that would drag the target below 3%.
Why is Wall Street Anticipating More Rate Cuts?
Why the endless cycle of cuts? Because after three trims in 2025, the street insists the blade must keep moving. With Trump poised to appoint a fresh Fed Chair, the markets cling to the hope of at least two cuts in the months ahead. 🤔
Even as jobs data disappoints, the Treasury keeps insisting that cheaper money will resurrect growth, as if the economy were a maimed horse revived by a pat on the saddle. Scott Bessent nods toward lower rates as the elixir. 😅
What’s the Expected Impact on Bitcoin and Crypto?
The anticipated rate cuts align with a river of liquidity under President Trump. The Fed began its QE in December 2025, and Trump promises to dump $200 billion into the housing sector, as if redecorating the nation with a splash of red-tinted cash. 😜
These moves are, as the poets would say, dovish enough to tickle the crypto market. Investors drift from cautious to risk-on, as capital shuffles from the old metals into the newer digital gold. With stocks marching like a bull and the wind at their backs, Bitcoin and the broader altcoin choir may enjoy a robust bull run in 2026. 🐂🚀
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2026-01-09 22:52