Big bear Rosenberg predicts: 125 basis points of 'violent rate cuts' coming in 2026 Former Merrill Lynch chief analyst David Rosenberg has released an extremely pessimistic forecast: don’t be fooled by the current calm illusion, the main theme of 2026 will be 'recession and redemption.' Logical chain: shrinking job market ➡ weakening economic momentum ➡ unemployment rate soaring to 6% ➡ five consecutive rate cuts by the Fed (totaling 125bps). If this prediction comes true, the 2.25% interest rate environment will completely rewrite the asset pricing logic of 2026. Wall Street consensus is still neutral, but Rosenberg believes a crash is imminent.