With rates near neutral, how much more can the Fed really cut in 2026?

Former President Donald Trump is reportedly leaning towards nominating either Kevin Warsh or Kevin Hassett to lead the Federal Reserve, as he prepares to finalize his selection for the position. This decision follows ongoing discussions about the future direction of U.S. monetary policy and the role of the Fed in managing economic conditions.

On the Bloomberg Real Yield program, experts Alexander Wolf from J.P. Morgan Private Bank and Mike Contopoulos from Richard Bernstein Advisors discussed the Federal Reserve's upcoming rate decision, highlighting significant concerns surrounding corporate credit, including AI oversupply and private market distress.

The Federal Reserve has taken a unanimous decision to reappoint its regional bank presidents, a move interpreted as a strategy to insulate itself from potential leadership changes under former President Trump. This action is seen as a proactive measure to maintain stability within the institution amid ongoing economic challenges.

Federal Reserve official Mary Daly expressed support for the recent interest rate cut, stating it was the correct decision for the Fed. This move aligns with ongoing adjustments in monetary policy as the Fed navigates fluctuating economic indicators and market expectations.

U.S. Treasury yields concluded the week on a higher note, with the 10-year yield rising despite a Federal Reserve meeting that was less hawkish than anticipated by some investors. This increase reflects ongoing market dynamics and investor sentiment towards interest rates.

JPMorgan CEO Jamie Dimon has commented on potential candidates for the Federal Reserve chair position, highlighting the significance of this role in shaping U.S. monetary policy. His insights come amid a competitive selection process, with various candidates being considered by the administration.

The Federal Open Market Committee has approved a third consecutive interest rate cut of 0.25 percentage points, lowering the federal funds rate to a range of 3.5% to 3.75%. This decision signals a potential pause in further cuts, as the Fed appears to be reassessing its monetary policy strategy amid ongoing economic challenges.

Broadcom's shares fell sharply after the company failed to meet investor expectations regarding its artificial intelligence (AI) prospects, coinciding with a decline in Nasdaq futures following Oracle's disappointing earnings report. This downturn occurred despite a record close for the S&P 500 after a recent Federal Reserve rate cut.