The Market Mindset — Leading economists have revised their Federal Reserve rate cut projections, now anticipating only two reductions in 2026 rather than the previously expected three cuts in 2025. The adjustment reflects growing concerns about inflation persistence and uncertainty surrounding the potential nomination of Kevin Warsh as Federal Reserve Chair. Market participants are closely monitoring the confirmation process, as Warsh's policy stance could significantly influence the central bank's approach to monetary policy and its impact on interest rates, bond markets, and economic growth projections.