Federal Reserve policy changes again: No rate cuts expected in 2026, but considering rate hikes in 2027

RektRecovery · 2026-01-12T06:20:11+00:00

JPMorgan has recently adjusted its expectations for Federal Reserve policy, removing the forecast of interest rate cuts in 2026 and now expects a 25 basis point rate hike in the third quarter of 2027. This indicates that the interest rate environment may become more tightening, which will have a significant impact on the cryptocurrency market. Investors should stay closely watchful.

RektRecovery

2026-01-12 06:20:11

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【Blockchain Rhythm】The Federal Reserve’s policy expectations have shifted again. JPMorgan Chase has recently adjusted its outlook on the Federal Reserve’s future policy—directly removing the previous expectation of a rate cut in 2026.

Not only that, they initially anticipated a 25 basis point rate cut in January, but now that expectation has also changed. Even more surprisingly, the Federal Reserve is not expected to cut rates in 2026; instead, JPMorgan Chase now predicts that by the third quarter of 2027, the Fed may initiate a rate hike cycle—raising rates by 25 basis points.

What does this mean? In simple terms, the interest rate environment could be much tighter than the market previously thought. For the cryptocurrency market, the Fed’s policy direction has always been a key market driver, and tightening monetary policy usually puts pressure on risk assets. Investors should closely monitor this shift in policy expectations.

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