New Delhi, Feb. 5 -- Disinflation in the United States is expected to continue into 2026, driven by a combination of weak labour market trends, fragile monetary conditions, and slowing economic activity, according to a report by the State Bank of India (SBI).

The report highlighted seven key factors that could compel the US Federal Reserve to cut interest rates in the coming period.

It stated "Slack in labour market, stagnant real disposable incomes alongside reduced inflationary impact might lead to US Fed rate cuts".

First, the report pointed to increasing slack in the US labour market. The unemployment rate has risen steadily from an average of 3.6 per cent in 2023 to 4 per cent in 2024, and further to 4.4 per cent in December 2025....