What You Should Know
Looking back at 2025, most global central banks continued along an easing path. However, as we approach 2026, monetary policy trajectories among major central banks are beginning to diverge. Does this signal that the era of abundant global liquidity is nearing its end? In the seventh installment of our 2026 Outlook Series, we consolidate the projected policy paths of 12 major central banks across developed and emerging markets, offering a comprehensive view of how global monetary policy is evolving.
MacroMicro regularly publishes a global central bank policy timeline outlook to help readers track policy stances and strategic directions. This report will be updated over time. For the latest real-time central bank information, please refer to our Central Bank Hub.
▌Federal Reserve (Fed): Rate Cuts Continue and Asset Purchases Expanded—Ample Liquidity Extends into 2026
In December 2025, the Federal Reserve cut rates by another 25 bps to a target range of 3.50%–3.75%. This brings cumulative rate cuts in the current easing cycle (which began in September 2024) to 175 bps. Accordingly, the December statement reintroduced language referencing “the extent and timing” of potential additional easing, signaling that consecutive rate cuts may no longer be guaranteed.
On the balance sheet front, the Fed not only paused quantitative tightening in December but also launched Reserve Management Purchases (RMPs), purchasing USD 40 billion in Treasury bills per month. This program is expected to continue at least through the April tax season next year, ensuring sufficient reserve levels to absorb market volatility. Taken together, the dual support of rate cuts and asset purchases suggests that accommodative US liquidity conditions will...
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