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Cluster · ECONOMICS

Will the Federal Reserve cut the federal funds rate by 75 basis points or more cumulatively during calendar year 2026?

Resolves Dec 30, 2026 (235 days)·100 truth conditions·4-model consensus·Download CSV
36%probability

4-model average

LOWconfidence

building category history

—stability

loading

Divergingmodels

35pt spread

These three readings tell you how much weight to put on the probability: confidence reflects category-level track record, stability tracks how the estimate has moved over time, models shows whether the four agree.

Decomposition

100 truth conditions
This matrix decomposes the question of whether the Federal Reserve will cut the federal funds rate by 75 basis points or more cumulatively in 2026 into 100 falsifiable child events. Each child resolves on a specific date against a public data source. Categories cover direct policy path (FOMC actions, dissents, balance sheet), macro fragility (labor, credit, banking stress), cross-central-bank dynamics (ECB, BOJ, PBOC), market structure (Treasury, repo, vol regime), and narrative or behavioral signals (Fed-vs-market divergence, institutional forecast revisions). The probability band is 5 to 40 percent by design. Questions outside that range carry little decision-relevant information. The 4-model consensus on each child gives both a probability and a spread. High-spread rows surface where models disagree, which is where a factor analyst should look closer. Tight-spread low-probability rows surface agreed-tail factors, which can be used to size hedges with confidence. Use this matrix as a feature library for under-modeled tail exposure, not as a forecast.
Direct policy path20 rows
avg spread 25pt· 8 hi-spread

Will the Federal Reserve hold an unscheduled emergency FOMC meeting at any point during 2026?

±15ptHIGH
19%

Will any FOMC voting member dissent in favor of a larger rate cut than the committee decided upon at any 2026 meeting?

±47ptLOW
38%

Will the Fed announce a one-time acceleration of balance sheet runoff (QT) pace during 2026?

±5ptHIGH
27%

Will the Fed decrease the monthly balance sheet runoff cap at any point during 2026?

±40ptLOW
45%

Will the unemployment rate rise by 75 basis points or more cumulatively during any 6-month rolling window in 2026?

±57ptLOW
59%

Will the Fed activate its Standing Repo Facility (SRF) on any day during 2026?

±40ptLOW
38%

Will the Fed's reverse repo facility (RRP) usage exceed $2.5 trillion on any single day during 2026?

±15ptHIGH
25%

Will core CPI (year-over-year) fall below 2.0% in any month during 2026?

±10ptHIGH
30%

Will the May 2026 FOMC meeting statement explicitly use the phrase 'further rate cuts' or 'rate cuts ahead'?

±47ptLOW
43%

Will the 2-year Treasury yield fall below 2.0% at any point during 2026?

±40ptLOW
28%

Will the 2s10s Treasury curve invert (2-year yield > 10-year yield) for 5 or more consecutive trading days during 2026?

±15ptHIGH
29%

Will the Fed lower the discount rate (primary credit rate) by more than 25 basis points in a single announcement during 2026?

±7ptHIGH
32%

Will any Treasury auction (of any maturity) in 2026 register a bid-to-cover ratio below 2.0x?

±10ptHIGH
28%

Will the high-yield credit spread (OAS) widen to 500bps or more for 5+ consecutive trading days at any point in 2026?

±50ptLOW
40%

Will the VIX index close above 40 for 3 or more consecutive trading days at any point during 2026?

±13ptHIGH
23%

Will the S&P 500 decline by 20% or more (peak-to-trough) at any point during 2026?

±15ptHIGH
31%

Will Powell explicitly state at any 2026 press conference that the Fed is in a 'cutting cycle'?

±37ptLOW
59%

Will the Fed announce a change to the FOMC statement template or communication framework during 2026?

±15ptHIGH
25%

Will the ISM Services PMI drop below 50 for 2 or more consecutive months during 2026?

±7ptHIGH
32%

Will initial jobless claims exceed 400k for 2 or more consecutive weeks at any point during 2026?

±10ptHIGH
29%
Macro fragility25 rows
avg spread 16pt· 2 hi-spread

Will the unemployment rate rise to 5.5% or higher in any single month during 2026?

±7ptHIGH
30%

Will the Sahm Rule trigger (3-month moving average of unemployment rises 0.5% above 12-month minimum) at any point in 2026?

±10ptHIGH
28%

Will the high-yield CCC-rated bond spread widen to 800 basis points or more for 5+ consecutive trading days at any point during 2026?

±15ptHIGH
30%

Will crude oil (WTI) close above $130/barrel for 10+ consecutive trading days at any point in 2026?

±13ptHIGH
18%

Will the Baltic Dry Index fall below 500 points for 20+ consecutive trading days during 2026?

±30ptMEDIUM
28%

Will the U.S. investment-grade corporate spread widen to 200 basis points or more for 3+ weeks (15+ trading days) in 2026?

±7ptHIGH
32%

Will the US commercial real estate (CRE) loan delinquency rate reach 6.5% or higher in any quarter of 2026?

±27ptMEDIUM
39%

Will auto loan delinquency rate (60+ days) reach 4.0% or higher in any quarter of 2026?

±3ptHIGH
35%

Will the Federal Reserve conduct an emergency liquidity injection (Fed discount window lending exceeds $50B) in 2026?

±5ptHIGH
27%

Will deposit flows out of US banks exceed $200 billion in any single month during 2026?

±15ptHIGH
29%

Will the ISM Services PMI drop below 45.0 for 2+ consecutive months in 2026?

±24ptMEDIUM
19%

Will continuing jobless claims reach 2.5 million or higher in any single week during 2026?

±15ptHIGH
19%

Will S&P 500 earnings per share decline by 15% or more in Q2 2026 vs. Q2 2025 (year-over-year)?

±12ptHIGH
22%

Will the Federal Reserve's unemployment rate forecast (Summary of Economic Projections) for end-2026 exceed 4.5% in any FOMC statement during 2026?

±47ptLOW
56%

Will commercial real estate prices (MSCI/NCREIF index) decline by 10% or more YoY at any point during 2026?

±12ptHIGH
34%

Will investment-grade bond spreads widen to 180+ basis points for 2+ consecutive weeks in 2026?

±15ptHIGH
29%

Will commercial property prices (CBRE All-Property Index) fall 15% or more YoY at any point in 2026?

±22ptMEDIUM
28%

Will US home prices (S&P/Case-Shiller 20-city index) decline 5% or more YoY in any month of 2026?

±20ptMEDIUM
32%

Will US corporate debt outstanding decline by $500+ billion in any quarter of 2026?

±22ptMEDIUM
18%

Will the Fed's preferred inflation gauge (core PCE YoY) rise 0.5 percentage points or more in any single month during 2026?

±20ptMEDIUM
23%

Will the US 10-year breakeven inflation rate fall below 1.5% at any point in 2026?

±10ptHIGH
30%

Will US industrial production decline on a year-over-year basis for 3+ consecutive months in 2026?

±13ptHIGH
36%

Will the Federal Reserve conduct an emergency rate cut (unscheduled FOMC action outside regular meetings) in 2026?

±15ptHIGH
13%

Will any major rating agency downgrade US sovereign debt from AAA in 2026?

±7ptHIGH
22%

Will the spread between 2-year and 30-year Treasury yields invert (30Y lower than 2Y) for 5+ consecutive trading days in 2026?

±20ptMEDIUM
32%
Cross-central-bank20 rows
avg spread 24pt· 8 hi-spread

Will the ECB cut rates by 100+ basis points cumulatively between January 1 and September 30, 2026?

±30ptMEDIUM
27%

Will the PBOC conduct cumulative RRR cuts totaling 150+ basis points between January 1 and August 31, 2026?

±32ptLOW
45%

Will the DXY (US Dollar Index) close above 115 for 20+ consecutive trading days at any point during 2026?

±33ptLOW
18%

Will the Fed and ECB activate an emergency dollar swap line authorization (beyond existing standing facilities) before December 31, 2026?

±15ptHIGH
22%

Will ECB President announce official guidance for rate cuts exceeding 50bps in any single statement between January 1 and June 30, 2026?

±13ptHIGH
22%

Will SNB Chair deliver a speech explicitly endorsing negative rates through end-2026 before August 31, 2026?

±10ptHIGH
18%

Will Riksbank Governor issue forward guidance for rate cuts exceeding 75bps cumulatively before September 30, 2026?

±42ptLOW
50%

Will the G7 Finance Ministers issue a joint statement calling for coordinated easing before November 30, 2026?

±12ptHIGH
34%

Will the ECB cut rates at more than 5 consecutive meetings between January 1 and December 31, 2026?

±5ptHIGH
26%

Will the Fed and Bank of England jointly activate a new GBP/USD swap line before October 31, 2026?

±20ptMEDIUM
28%

Will the Bank of England cut rates by 125+ basis points cumulatively during 2026?

±15ptHIGH
25%

Will the Norwegian Krone appreciate by 8%+ against the dollar between January 1 and September 30, 2026?

±10ptHIGH
29%

Will the Swedish Krona weaken by 10%+ against the euro between January 1 and August 31, 2026?

±10ptHIGH
30%

Will the People's Bank of China cut the 1-year Medium-Term Lending Facility (MLF) rate by 25+ basis points before June 30, 2026?

±32ptLOW
59%

Will the Fed activate its FX Swap Lines with 6+ central banks simultaneously before October 31, 2026?

±15ptHIGH
23%

Will the ECB announce a new Liquidity-providing Long-Term Refinancing Operation (LTRO) before May 31, 2026?

±37ptLOW
44%

Will the G10 central bank heads hold an unscheduled emergency meeting before November 30, 2026?

±20ptMEDIUM
25%

Will any G7 central bank announce a unilateral currency intervention before June 30, 2026?

±57ptLOW
38%

Will the Fed expand its reverse repo facility capacity by 50%+ between January 1 and September 30, 2026?

±25ptMEDIUM
27%

Will the 2-year swap spread widen to 40+ basis points above Treasury yields at any point during 2026?

±40ptLOW
37%
Market structure20 rows
avg spread 30pt· 10 hi-spread

Will the ICE BofA MOVE index exceed 150 for 15 or more consecutive trading days between January 1 and December 31, 2026?

±13ptHIGH
21%

Will the 2y10y Treasury yield curve slope invert (10y yield minus 2y yield below -50bps) for any single trading day in 2026?

±60ptLOW
37%

Will the SOFR-IORB spread (SOFR rate minus Fed's Interest on Reserve Balances rate) widen to 20bps or more for 5 or more consecutive trading days in 2026?

±20ptMEDIUM
24%

Will primary dealers collectively report net short Treasury positions exceeding $50 billion in any single week during 2026?

±37ptLOW
39%

Will the Fed's Reverse Repo (RRP) outstanding balance fall below $200 billion for any single day during Q2 2026?

±35ptLOW
35%

Will the Bloomberg US Aggregate Bond Index OAS (Option-Adjusted Spread) widen to 150bps or more at any point during 2026?

±15ptHIGH
40%

Will the Bloomberg US Mortgage-Backed Securities Index OAS widen to 120bps or more for 10 or more consecutive trading days during 2026?

±5ptHIGH
27%

Will the CMBX.NA.BBB Index price fall below 80 at any point during 2026?

±40ptLOW
40%

Will the 10-year Treasury auction tail (highest accepted bid yield minus stop-out yield) exceed 2.5bps at any single auction during 2026?

±57ptLOW
46%

Will the high-yield CCC spread (BofA Merrill Lynch CCC spread) widen to 900bps or more for any 5-consecutive-trading-day period during 2026?

±15ptHIGH
30%

Will the Bloomberg US High Yield OAS exceed 550bps for 15 or more consecutive trading days during 2026?

±15ptHIGH
25%

Will the TLT (iShares 20+ Year Treasury ETF) experience a single-day intra-day price swing (high minus low) exceeding 3% on any trading day during 2026?

±50ptLOW
42%

Will the fed funds futures implied rate for Dec 2026 drop below 3.0% at any point during 2026?

±42ptLOW
50%

Will the difference between the 30-year fixed mortgage rate and the 10-year Treasury yield widen to 250bps or more for 10 or more consecutive trading days during 2026?

±20ptMEDIUM
25%

Will the Bloomberg Barclays US Corporate Investment Grade OAS exceed 180bps for 5 or more consecutive trading days during 2026?

±35ptLOW
37%

Will repo fails (failed transactions in Treasury repo market) exceed $5 billion on any single day during 2026?

±53ptLOW
39%

Will the Secured Overnight Financing Rate (SOFR) exceed the Fed's IORB target rate by more than 25bps for any 3-consecutive-day period during 2026?

±25ptMEDIUM
25%

Will the Federal Reserve reduce its balance sheet at a pace exceeding $150 billion per month (annualized) at any point during 2026?

±47ptLOW
41%

Will the ICE BofA High Yield Bond Index options implied volatility (HYIV) exceed 60% for any single day during 2026?

±13ptHIGH
23%

Will the Treasury market experience a 'flash crash' event (defined as >2% intra-day swing in 10y yield within 15 minutes) on any trading day during 2026?

±10ptHIGH
14%
Narrative & behavioral15 rows
avg spread 24pt· 6 hi-spread

Will the gap between the CME Fed funds futures December 2026 price and the FOMC September 2025 SEP median projection widen to 75+ basis points by Q4 2025?

±35ptLOW
45%

Will the WSJ Fed funds rate expectations survey (December 2025 round) show median 2026 rate cuts of 125+ basis points?

±12ptHIGH
37%

Will at least 5 major economists publish an open letter calling for 100+ basis points of 2026 Fed cuts by August 31, 2026?

±15ptHIGH
25%

Will the yield curve (10Y-2Y) remain inverted for 8+ consecutive weeks at any point in 2026?

±37ptLOW
48%

Will core PCE fall to 1.8% or lower by June 30, 2026?

±20ptMEDIUM
30%

Will the Bank for International Settlements issue a report by Q3 2026 flagging US monetary policy as 'overly restrictive'?

±15ptHIGH
32%

Will the IMF's World Economic Outlook recommend Fed rate cuts of 100+ basis points in its April or October 2026 edition?

±15ptHIGH
19%

Will Goldman Sachs shift its 2026 Fed funds rate forecast downward by 75+ basis points between its December 2024 and July 2026 forecasts?

±15ptHIGH
32%

Will the Congressional Budget Office's June 2026 economic forecast show US recession probability ≥40% for 2026 or 2027?

±10ptHIGH
30%

Will the Cato Institute or Heritage Foundation publish a joint statement calling for Fed rate cuts by December 31, 2026?

±22ptMEDIUM
30%

Will Credit Suisse or UBS publish a report by Q3 2026 forecasting 150+ basis points of Fed cuts in 2026?

±35ptLOW
37%

Will Fed funds futures for December 2026 show probability >85% of ≥50bps cuts by April 30, 2026?

±53ptLOW
45%

Will the spread between the fed funds rate (end-2026) and PCE inflation (end-2026) become negative by December 31, 2026?

±32ptLOW
39%

Will investment-grade credit spreads widen to 200+ basis points at any point in 2026?

±17ptMEDIUM
35%

Will the Fed's balance sheet expand by $200+ billion during 2026 (signaling crisis intervention)?

±30ptMEDIUM
25%

Belief trajectory

Loading belief trajectory...

Per-model probabilities

GPT-4o
30%-6 vs avg
Gemini
60%+24 vs avg
Claude
32%-4 vs avg
GrokGrok
25%-11 vs avg
Key disagreementGemini (60%) vs Grok (25%): Different weighting of factors

Resolution criteria

Sourcefederalreserve.gov FOMC statements, calendar year 2026
CRENE-FED-CUTS75-20261231Generated May 7, 2026