"Expected rate cuts of 150 basis points in 2026"! Latest remarks from Federal Reserve governor

LightningPacketLoss · 2026-03-19T00:13:08+00:00

Federal Reserve Governor Millon expects to cut interest rates by 150 basis points in 2026, create about one million jobs, and avoid triggering inflation. The economic outlook remains strong, with core inflation nearing the target. Non-farm employment data will be released on Friday and may reinforce expectations of rate cuts. Gold and silver prices have declined, and Morgan Stanley forecasts that gold will rise to $4,800 in 2026.

LightningPacketLoss

2026-03-19 00:13:08

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The Federal Reserve’s latest statement.

On Thursday, Federal Reserve Board member Michelle Bowman stated that interest rates are expected to be cut by about 150 basis points by 2026. This move could create approximately one million jobs without triggering inflation. Bowman said it’s hard to say whether policy is neutral, as she believes the U.S. remains substantially above neutral levels. She also mentioned she has no idea about her future at the Fed.

Bowman noted that the core inflation rate has largely fallen back to around the Fed’s 2% target, and she expects the U.S. economy to remain strong this year. She believes that if the Fed fails to lower short-term borrowing costs, this outlook could be jeopardized.

The U.S. Bureau of Labor Statistics will release the highly anticipated non-farm payrolls report on Friday. Due to the government shutdown, data collection was disrupted, so this will be the first report released on time after the deadlock was resolved. According to economists surveyed by Dow Jones, non-farm employment is expected to increase by 73,000 in December 2025, up from 64,000 in November 2025, with the unemployment rate expected to slightly decrease to 4.5%. Market analysis indicates that although the ADP data was weak, it confirmed a trend of a “gradual cooling” in the labor market. If subsequent non-farm data echo this signal, it could further reinforce expectations of continued rate cuts by the Fed in the first half of the year.

In the markets, on January 8, gold and silver continued to decline. As of press time, spot silver plunged nearly 5% to $74.629 per ounce. Spot gold fell over 1% to $4,410.25 per ounce.

In its latest report, Morgan Stanley forecasted that gold prices could rise to $4,800 per ounce by Q4 2026, surpassing the record high set in 2025. The investment bank believes that falling interest rates, leadership changes at the Federal Reserve, and ongoing purchases by central banks and funds worldwide will collectively drive gold prices higher.

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