Wall Street economists are increasingly skeptical about the Federal Reserve's likelihood of cutting interest rates in 2026, with expectations now shifting towards a potential rate hold until July. Sarah House of Wells Fargo highlighted that delaying rate cuts raises the economic threshold for further easing. While consensus still leans towards eventual cuts, doubts are emerging.
JPMorgan's Michael Feroli anticipates the Fed will maintain current rates throughout 2026, with a potential rate hike in late 2027. Meanwhile, HSBC's Diane Swonk described the Fed's predicament as a "no-win situation," citing persistent inflation and stagnant income growth. Stifel's Lindsey Piegza noted internal Fed divisions, with some officials wary of inflation risks from further easing. Former Dallas Fed President Robert Kaplan emphasized the need for clear evidence of declining inflation before any rate cuts.
Wall Street Economists Split on Fed's 2026 Rate Cut Prospects
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
