Barclays: Fed Likely to Hold Steady This Week, But Rate Cut Still Possible This Year

Odaily Planet Daily News Barclays analysts stated in a report that against the backdrop of still-high inflation, the Fed is expected to keep the federal funds target rate range unchanged at this week's meeting, but a rate cut this year remains possible. Analysts said: "In a highly uncertain environment, the Fed tends to stand pat. Strong demand and still-elevated inflation support its patience, and policymakers have also signaled waning confidence in further rate cuts in the near term." Analysts indicated that if inflation falls as expected, the Fed is expected to gain enough confidence to begin easing policy around September. "We still expect it to cut rates this year." According to LSEG data, the money market currently prices in a 10-basis-point rate cut by the Fed in 2026.