Persistent inflation and a resilient U.S. economy continue to shape trader expectations for the federal funds rate at the end of 2026. The September 2026 FOMC meeting delivered a 25 basis point hike to the 3.75-4.00% range, with the updated Summary of Economic Projections showing a median endpoint of 4.1% for 2026 amid upward revisions to growth and core PCE inflation forecasts. Recent data, including September CPI at +3.7% year-over-year and unemployment near 4.1%, support the view that policymakers will likely deliver one additional increase by December before holding steady. Market-implied pricing and economist surveys align with this path, concentrating probability mass around 4.00-4.25% as the terminal level for the year.
Experimental AI-generated summary referencing Polymarket data. This is not trading advice and plays no role in how this market resolves. · UpdatedView resolved

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