Institution: The US still has approximately three interest rate cuts room in 2026

On December 25, Galaxy Securities pointed out that, influenced by the economic growth exceeding expectations, CME observation data shows that the probability of interest rate cuts in January 2026 has converged compared to previous levels. After the data was released, Fed Chair candidate Hasset stated that the growth foundation still comes from falling prices, income growth, and improved sentiment, and explicitly pointed out that if GDP growth remains around 4%, new employment is expected to return to a range of 100,000 to 150,000 jobs per month. He also frankly said that the Federal Reserve is clearly lagging behind the trend on interest rate cuts. The economic growth in the third quarter mainly reflects the fading of inventory and trade disturbances and is not enough to change the marginal weakening trend of employment; against the backdrop of employment becoming the policy focus and the gradual confirmation of the Fed Chair candidate, there remains about 3 interest rate cut opportunities in 2026. (Jin10)