"Expected rate cuts of 150 basis points in 2026"! Latest remarks from Federal Reserve governor

LightningPacketLoss · 2026-03-21T00:42:26+00:00

Federal Reserve Governor Millon expects to cut interest rates by 150 basis points in 2026, create about one million jobs, and avoid triggering inflation. The economic outlook remains strong, with core inflation nearing the target. Non-farm employment data will be released on Friday and may reinforce expectations of rate cuts. Gold and silver prices have declined, and Morgan Stanley forecasts that gold will rise to $4,800 in 2026.

LightningPacketLoss

2026-03-21 00:42:26

Abstract generation in progress

The Federal Reserve’s latest statement.

On Thursday local time, Federal Reserve Board Member Michelle Bowman stated that interest rates are expected to be cut by about 150 basis points by 2026. This move could create approximately one million jobs without triggering inflation. Bowman said it’s hard to say whether policy is neutral, as she believes the U.S. economy still substantially exceeds neutral levels. She also mentioned she has no idea about her future at the Fed.

Bowman noted that the core inflation rate has largely fallen back to the Fed’s 2% target, and she expects the U.S. economy to remain strong this year. She believes that if the Fed fails to lower short-term borrowing costs, this outlook could be jeopardized.

The U.S. Bureau of Labor Statistics will release the highly anticipated non-farm payroll data on Friday local time. Due to the government shutdown earlier, data collection was disrupted, and this will be the first report released on time after the deadlock was resolved. According to economists surveyed by Dow Jones, non-farm employment is expected to increase by 73,000 in December 2025, up from 64,000 in November 2025, with the unemployment rate expected to slightly decrease to 4.5%. Market analysis indicates that although the ADP data was weak, it confirmed a trend of a “gradual cooling” in the labor market. If subsequent non-farm data echoes this signal, it could further reinforce expectations of the Fed cutting rates through the first half of the year.

In the market, on January 8, gold and silver continued to decline. As of press time, spot silver plunged nearly 5% to $74.629 per ounce. Spot gold fell over 1% to $4,410.25 per ounce.

In its latest report, Morgan Stanley predicts that gold prices will rise to $4,800 per ounce in Q4 2026, surpassing the record high set in 2025. The investment bank believes that falling interest rates, leadership changes at the Federal Reserve, and ongoing purchases by central banks and funds worldwide will collectively drive gold prices higher.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes