Mark Zandi, chief economist at Moody’s Analytics, believes that a weak labor market, inflation uncertainty, and political pressure will prompt the Federal Reserve to aggressively cut interest rates in early 2026. Although both the market and Federal Reserve officials expect only moderate easing next year, Zandi forecasts that the Federal Reserve will implement three rate cuts of 25 basis points each in the first half of the year."The rationale for further monetary easing will be a persistently weak job market, particularly in early 2026. Businesses need more time to be confident that shifting trade and immigration policies, as well as other threats, will not catch them off guard before they resume hiring.""He added, "Until then, job growth will be insufficient to prevent the unemployment rate from rising further. As long as the unemployment rate continues to climb, Federal Reserve will cut rates." Zandi’s forecast is at least more aggressive than market expectations and those of Federal Reserve, both of which point to a slower pace of rate cuts.