Interest rates are likely to edge lower in 2026 as the Fed weighs inflation, jobs and political pressure. See what forecasts suggest for the year ahead.

There's another Federal Reserve meeting on the calendar this month, but will mortgage rates fall once it's over?

J.P. Morgan predicts the U.S. Federal Reserve's next move will be a rate hike in 2027, while Barclays and Goldman Sachs joined Morgan Stanley in postponing rate cut calls to mid-2026 as data suggested that the labor market was not rapidly deteriorating.

JP Morgan no longer expects Fed rate cuts in 2026, now forecasting a 2027 hike. Goldman Sachs and Barclays delay cut predictions.

At their December 9-10 meeting, Fed officials agreed to cut their key interest rate by a quarter point for the third time this year, to about 3.6%, the lowest in nearly three years.

Federal Reserve Bank of St. Louis President Alberto Musalem said inflation risks are moderating, and he expects prices to begin converging toward the central bank’s target later this year.

The Department of Justice (DOJ) has opened a probe into the Federal Reserve’s ongoing renovation of its headquarters in Washington, D.C. Federal Reserve Chair Jerome Powell said in a statement Sunday that the DOJ served the Fed with grand jury subpoenas and threatened a criminal indictment related to his testimony before the Senate Banking