Group 1 - The fixed income market anticipates a new Federal Reserve Chair in 2026, with expectations of interest rate cuts during the eight scheduled FOMC meetings [1][4] - The current federal funds rate is between 3.75% and 4%, with projections suggesting it may drop to around 3% by December 2026, although it could range from 2% to 4% [2] - The FOMC will update its economic forecasts starting in March 2026, with scheduled meetings on January 28, March 18, April 28, June 17, July 29, September 16, October 28, and December 9 [2] Group 2 - The potential new Chair, likely to be a proponent of rate cuts, is expected to be nominated by President Trump, with Kevin Hassett as a leading candidate [3] - FOMC decisions will heavily rely on economic data, particularly employment figures, which are currently mixed, with inflation slightly above the 2% target and unemployment rising but not alarming [3] - The outcome of employment data in 2026 will significantly influence the Fed's policy direction, as differing views among policymakers exist regarding the labor market's impact on the economy [3][4]