Moody’s Mark Zandi: Fed Likely to Deliver Slow, Incremental Rate Cuts in 2026 as CPI Remains Above Target

Moody’s Chief Economist Mark Zandi says the Federal Reserve may implement several rate cuts in 2026, driven by a fragile economy rather than robust growth. The approach is expected to be gradual and cautious, not an aggressive easing cycle. For crypto markets, this policy trajectory influences liquidity and risk appetite, with Bitcoin and other digital assets reacting to shifts in monetary signals and leverage conditions.

Recent data show the CPI rose 2.7% year‑over‑year in November 2025, with core CPI at 2.6%, keeping inflation above the Fed’s 2% target. Zandi notes inflation remains elevated, and while upside surprises are possible, the risk is two‑sided. This backdrop complicates the rate‑cut calculus and underscores the need for disciplined policy signaling, a factor crypto traders watch as they assess demand drivers and cross‑asset correlations.