Split Fed: 2026 Dot Plot Shows Strong Divide on Rate Cuts

• The Federal Reserve's FOMC trimmed the key lending rate by 25 basis points in its December 10th meeting.
• The 2026 dot plot reveals a significant division among FOMC members regarding future rate cuts.
• Views for 2026 range from a 25 basis point hike (3 members) to rates falling under 3% (3 members).
• Four members each project rates between 3.5-3.75%, a 25 bps cut, or a 50 bps cut for 2026.
• 16 out of 19 FOMC officials anticipate at least one rate cut in 2026, with 10 expecting more than two cuts.

Why It Matters: Fed's divided rate cut outlook creates economic uncertainty for 2026.