Fed Interest Rate Cuts Expected to Be Delayed, Say Multiple Financial Institutions

By: crypto insight|2026/01/12 22:30:05

Key Takeaways

Several major financial institutions have adjusted their forecasts, predicting delays in the timing of Federal Reserve interest rate cuts.
Citigroup now expects rate cuts of 25 basis points to occur in March, July, and September, later than originally planned.
Goldman Sachs also revised its forecast, pushing expected rate cuts to June and September.
JPMorgan Chase has shifted its outlook, no longer expecting any rate cuts in 2026, but anticipates a rate hike in 2027.

WEEX Crypto News, 12 January 2026

As the Federal Reserve navigates the complexities of its monetary policy, several key financial institutions have recently updated their projections regarding future interest rate adjustments. The consensus is moving towards a delay in the anticipated rate cuts, reflecting the evolving economic landscape and the persistent factors influencing financial market conditions.

Shifts in Interest Rate Predictions

Citigroup’s Revised Expectations

Citigroup has modified its previous expectation for Federal Reserve rate cuts. Originally anticipating cuts in January, March, and September this year, the institution now foresees 25-basis-point reductions instead slated for March, July, and September. This shift acknowledges the broader economic conditions that have begun to shape the Federal Reserve’s decision-making processes.

Goldman Sachs and the Timing of Cuts

Goldman Sachs has similarly adjusted its forecast, with interest rate reductions now expected to occur in June and September, as opposed to the prior expectation of March and June. This change follows softer non-farm payroll data, indicating a subtle weakening in the labor market, accompanied by unexpectedly strong GDP growth. The bank has thus recalibrated its outlook, projecting the Federal funds rate to end in 2026 at a range of 3% to 3.25%. Additionally, Goldman has revised down its 12-month recession probability from 30% to 20%.

Barclays and Morgan Stanley’s Predictions

Joining this trend, Barclays has pushed back its expected rate cuts to June and December, while Morgan Stanley now predicts cuts in June and September. Both institutions previously anticipated earlier adjustments, reflecting the shifts in their economic interpretations and forecasts.

JPMorgan Chase’s Modified Outlook

In an unusual divergence from previous forecasts, JPMorgan Chase no longer estimates any rate cuts for the year 2026. Instead, the institution anticipates a significant policy shift, predicting a 25-basis-point rate hike in the third quarter of 2027. This is in contrast to its earlier projection of a rate cut in January 2026, highlighting a substantial pivot in its strategic economic outlook.

Implications for the Economy and Investors

The Federal Reserve’s monetary policy decisions are integral to shaping the economic environment, influencing everything from inflation rates to unemployment statistics. For investors, the recalibrated forecasts from these financial institutions suggest a need to reassess investment strategies and portfolio allocations. Lower interest rates tend to incentivize stock investments, which could extend bullish market conditions, though this is contingent upon the broader economic climate and potential downside risks.

Treasury Secretary Scott Bessent has emphasized the role of lower interest rates as a crucial factor for forward economic momentum, suggesting that further reductions could catalyze substantial growth across various sectors. However, the delay in these cuts signifies that investors and businesses must navigate a period of continued financial prudence.

-- Price

Historical Context and Future Considerations

The Federal Reserve’s most recent 25-basis-point rate cut, executed in December, was part of a series of monetary easing measures intended to accommodate a softer economic environment. With a current federal funds rate between 3.50% and 3.75%, any future rate cuts towards a neutral stance are predicted to support extended market growth.

Historically, rate cuts have proved beneficial for the stock market, as evidenced by the stock market’s performance following previous cuts. Yet, should the economy slow significantly, there could be deeper rate cuts looming on the horizon, ranging between 200 and 300 basis points, according to some estimations.

As we look ahead, the influence of the Federal Reserve’s policy decisions will continue to be a pivotal factor for economic stability. In an era of interconnected, globalized markets, financial institutions and policymakers must remain agile in response to the continuously shifting economic landscape.

Positive Alignment with WEEX

Stay informed on the latest market trends with WEEX and explore opportunities to align your investments with dynamic global shifts. Join WEEX today for expert insights and resources tailored to today’s financial environment. [Sign up here](https://www.weex.com/register?vipCode=vrmi).

FAQ

What is the current forecast for Federal Reserve rate cuts?

Several institutions, including Citigroup, Goldman Sachs, and Barclays, have adjusted their forecasts to anticipate rate cuts in mid to late 2026, with expected reductions in either June, September, or December.

How does delayed interest rate cutting affect investors?

Delays in rate cuts can maintain higher interest expenses for companies, influencing profit margins and investment strategies, potentially slowing the anticipated boost to equities typically associated with rate reductions.

Why did Goldman Sachs revise its rate cut expectations?

Goldman Sachs amended its forecast in response to weaker non-farm payroll figures and robust GDP growth. These factors prompted an adjustment, with expectations for rate cuts now in June and September.

What are the implications of JPMorgan Chase’s forecast?

JPMorgan Chase’s unique projection of a rate hike in 2027 suggests a careful watch on inflation and economic stability indicators that could influence future policy decisions significantly.

How can investors prepare for potential monetary policy changes?

Investors can prepare by diversifying their portfolios, staying updated on Federal Reserve communications, and considering both equity and fixed-income options to manage potential risks in a changing interest rate environment.

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

The US AI Startup Is Loving China's Open Source Model

80% of US AI Startups Are Using Chinese Open Source Models

Three Weeks of the US-Iran War: Who's Making Money, Who's Paying the Bill?

Global Losing 10 Million Barrels of Oil Each Day, Russia Earns Over $800 Million in Just Over Two Weeks

Interpreting Polymarket's Major Update Last Night: Fee Expansion, Self-Regulation, and New Incentives

Although there is no information about a token airdrop, the overall community sentiment is optimistic. The real good news is to rhythmically control the positive promotion.

From Human Application to Intelligent Collaboration: How GOAT Network Builds the Next Generation Digital Economy

Embracing the Era of Super Individuals: GOAT Network launches Bitcoin-secured Layer 2 exclusive infrastructure, fully empowering AI entities to usher in a new era of fully automated digital economy.

CZ Washington Dialogue: Crypto Entrepreneurs are Accelerating Their Return to the United States

CZ connects with the DC Blockchain Summit: The prison memoir is about to be published, harshly criticizing the inaccuracies of traditional media reports, and pointing out that if the U.S. wants to become the "global crypto capital," it urgently needs to introduce more sufficient market competition t...

Morning Report | Strategy increased its holdings by 1,031 bitcoins last week; Katana Blockchain acquires IDEX; NYSE completes rule change to eliminate trading limits on crypto ETF options

Overview of Important Market Events on March 23

WEEX P2P now supports JOD, USD & EUR—Merchant Recruitment Now Open

To make crypto deposits easier, WEEX has officially launched its P2P trading platform and continues to expand fiat support. We're excited to announce that the Jordanian Dinar (JOD), United States Dollar (USD ) and Euro (EUR) are now available on WEEX P2P!

Electric Capital: Tracking 501 types of yield-generating RWA assets, we discovered these patterns

From private credit to GPU leasing, from catastrophe bonds to music royalties, the range of tokenizable assets is much richer than the market perceives. However, the biggest challenge is not technology, but distribution—existing RWAs heavily rely on a few large deployers, and the concentration of ri...

Those who are cut off by AI will not disappear; they will become the creators of the next round of the economy

AI is not eliminating people, but rather the superstition of "stable careers": those who break the shackles of organizations and understand how to rewrite themselves are ushering in the ultimate revenge.

Stablecoins reshaping cross-border payments in Asia? Strategic panorama and investment opportunity analysis