Mitsubishi UFJ Says Fed Policy Could Become More Complex in Late 2026 Amid Leadership Changes

Mitsubishi UFJ, one of Japan’s largest financial institutions, said on Dec. 11 that the Federal Reserve cut interest rates by 25 basis points in a 9–3 vote and acknowledged that the labor market continues to cool, according to BlockBeats and Jin10. Fed Chair Jerome Powell noted significant downside risks to employment and said rate hikes are not the baseline outlook, adding that FOMC members remain split between holding and cutting rates. The Fed also indicated that goods inflation could peak in early 2026 if no new tariffs are implemented, though persistence risks remain. The latest Fed dot plot projects only one rate cut in 2026, a more hawkish stance than market expectations. Mitsubishi UFJ added that policy decisions in the second half of next year may become more complicated due to upcoming changes in Fed leadership.