Major banks on Wall Street have delayed their forecasts for Federal Reserve interest rate cuts, with many now expecting no cuts until 2026 or later. Following the April non-farm payrolls data, institutions like Bank of America and Barclays have adjusted their expectations, citing persistent inflation and a strong labor market as reasons for the Fed to maintain high rates.
According to a forecast table dated May 8, 2026, Bank of America anticipates the first rate cut in July 2027, while Barclays expects it in March 2027. Other institutions, such as Deutsche Bank and HSBC, foresee no changes for an indefinite period. Analysts suggest that if current economic trends persist, more institutions may adopt a "no rate cut" stance.
Major Banks Push Fed Rate Cut Forecasts to 2026 and Beyond
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