Fed dot plot signals one 25 bp rate cut for 2026, another for 2027

The U.S. Federal Open Market Committee's December dot plot indicates one 25 bp interest rate cut in 2026 and another in 2027. For the remainder of 2025, six of the 19 members projected rates would hold steady, 12 anticipated one 25 bp cut, and one member forecast a 50 bp reduction.