ChainThink News, December 25: Galaxy Securities pointed out that due to economic growth exceeding expectations, CME FedWatch data shows the probability of a rate cut in January 2026 has narrowed compared to previous forecasts.

Following the data release, Harbert, a leading candidate for Federal Reserve Chair, stated that the growth foundation remains rooted in declining prices, rising income, and improved sentiment. He explicitly noted that if GDP growth sustains around 4%, new job creation could rebound to the range of 100,000 to 150,000 per month. He also candidly acknowledged that the Federal Reserve is notably behind the curve on rate cuts.

Third-quarter economic expansion primarily reflects the fading of inventory and trade distortions, which is insufficient to reverse the marginal weakening trend in employment. With employment becoming the central focus of policy trade-offs and the Federal Reserve Chair appointment gradually taking shape, there remains approximately three rate cut opportunities available in 2026. (Jinshi)