Barclays Reaffirms Two Fed Rate Cut Calls for 2026

Barclays’ economics team is doubling down on its outlook for Fed rate cuts in 2026, according to BlockBeats reporting. The bank expects the Federal Reserve to deliver two successive 25 basis point reductions, with March and June marked as the likely execution months.

While this remains the base case scenario, strategists are increasingly concerned about the alternative—that the Fed could hold off longer than anticipated. The upside risk of delayed rate action has become more pronounced as policymakers assess the lagged effects of recent monetary easing.

Recent minutes from December’s Federal Open Market Committee meeting provide some support for the bullish rate-cut narrative. The language suggests that January’s decision is unlikely to see any policy surprises, effectively pushing meaningful adjustments further into the year.

The key takeaway from Barclays’ analysis: the FOMC needs breathing room to evaluate how previous cuts are trickling through the broader economy. Until that assessment is complete, the committee is unlikely to rush into new decisions. This cautious stance means the timeline for 2026 rate cuts could be the deciding factor for market positioning over the coming months.