A Reuters survey indicates that the Federal Reserve is anticipated to implement two interest rate cuts in 2026, with the first expected in June as Waugh assumes the role of Fed chair. The survey also suggests that long-term U.S. Treasury yields will remain stable in the short term but are likely to increase later in the year due to inflation concerns and the Federal Reserve's independence.
Nearly 60% of bond strategists surveyed believe that the extensive issuance of U.S. Treasuries, necessary to fund Trump's tax cuts and spending plans, will hinder the Fed's ability to significantly reduce its $6.6 trillion balance sheet. The yield on the 2-year Treasury is projected to decrease from 3.50% to 3.45% by the end of April and to 3.38% by the end of July, while the 10-year Treasury yield is expected to rise to 4.29% within a year.
Fed Expected to Cut Rates Twice in 2026, First in June: Reuters Survey
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