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Prediction market on manifold. Resolution criteria This market resolves YES if the Federal Reserve raises the federal funds rate target range at any point during 2026. It resolves NO if the target range remains unchanged or is lowered throughout the entire year. Resolution will be determined by official FOMC announcements and policy decisions published on the Federal Reserve's website. The FOMC meets eight times annually, with decisions announced following each meeting. Background The FOMC voted to maintain the benchmark federal funds rate at 3.5% to 3.75% following three rate cuts in 2025. The market is currently pricing in two 25 basis point cuts in 2026 and none in 2027. The median projection on the policy rate as seen in the Fed's interest rate forecast, known as the dot plot, anticipates one more 25-basis-point cut in 2026. Fed officials are divided over the future path of interest rates, reflecting a tension between the need to contain inflation and the desire to support the labor market. Several participants indicated that further reductions in the fed funds rate would likely be appropriate if inflation continues to decline in line with their expectations. Others argued that it may be prudent to hold the policy rate steady for some time and some even raised the possibility that rate increases could become necessary if inflation remains persistently above target. Considerations President Trump nominated Kevin Warsh to become the next Fed chair, replacing Jerome Powell when the latter's term ends in May 2026. Leadership transitions can influence monetary policy direction, though fundamental changes to Fed communications require FOMC approval, and the chair has latitude in press conferences and speeches, but official statements and core communications must reflect Committee consensus to maintain credibility and consistency. This description was generated by AI.
24h Volume: $29.1. Liquidity: $1,000. Resolves: 12/31/2026.