Louis Navellier Forecasts Federal Reserve to Continue Rate Cuts in 2026

Recent market analysis from louis navellier, Chief Investment Officer at Louis Navellier & Associates, suggests a significant policy shift ahead. According to his latest market assessment, the Federal Reserve is expected to implement four additional interest rate reductions throughout 2026, bringing the benchmark rate down to what economists term the “neutral level”—the point where monetary policy neither stimulates nor restricts economic activity.

Declining Real Estate Values Signal Deflationary Pressures

louis navellier’s analysis identifies a troubling economic indicator: weakening housing prices are amplifying deflation risks across the economy. He emphasizes that this is a critical concern demanding Fed attention. The combination of soft real estate markets and underlying deflationary forces creates a challenging backdrop that necessitates policy accommodation rather than tightening.

Employment Gaps Justify Monetary Easing

A key component of louis navellier’s reasoning centers on labor market dynamics. With the U.S. economy struggling to generate robust job growth, he argues there’s minimal justification for the Federal Reserve to maintain its current restrictive policy stance. Stronger employment figures would typically support elevated rates, but the current reality points toward the need for policy relief.

Escalating Deflation Could Trigger More Aggressive Cuts

Beyond the anticipated four rate cuts, navellier cautions that if deflationary pressures intensify further, the Fed may need to move even more aggressively. This contingency planning reflects the complexity of navigating between conflicting economic forces—supporting growth while managing inflation expectations. Should economic conditions deteriorate, additional monetary stimulus may become necessary to stabilize economic activity.