Fed Rate Cut Delay Expectations
Investors are adjusting their expectations for Fed rate cuts further out into the calendar.
Too little corroboration in the last 3 days to call a trend (8 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Traders now see an 82% chance that the Fed and its new chairman, Kevin Warsh, will not raise the federal funds rate at its next meeting later this month. That's up from the 71% chance seen a day earlier."
"T-notes retreated today on the stronger-than-expected increase in US May nonfarm payrolls and the sharp upside revision to April nonfarm payrolls, bolstering speculation that the next move by the Fed will be an interest rate increase."
"Global bond markets also faced pressure, with the 10-year US Treasury yield rising to a five-week high during the month. This followed the US Federal Reserve’s most divided rate decision since 1992, which dampened expectations of near-term rate cuts as rising energy prices heightened inflation concerns."
"Goldman Sachs and other forecasters have continued to adjust their rate-cut expectations as the inflation and growth backdrop has evolved, while many economists still expect cuts later in 2026 rather than immediately."
"Higher oil prices have revived inflation jitters and complicated the interest rate outlook for central banks. The US Federal Reserve struck a hawkish tone last week, projecting only one reduction in 2026."
"US stocks ended lower after the Federal Reserve kept interest rates steady. Policymakers signaled only one rate cut this year. This reduced expectations of easy monetary policy."
"US stocks ended lower after the Federal Reserve kept interest rates steady. Policymakers signaled only one rate cut this year. This reduced expectations of easy monetary policy."
"Because of the spike for oil prices, traders have pushed back forecasts for when the Fed could resume its cuts to interest rates."
"This tension is keeping markets volatile. Good news on inflation does not automatically translate into a stock market rally."
"Stocks maintained their losses after stronger-than-expected US economic news on Nov retail sales and Nov producer prices, along with hawkish comments from Minneapolis Fed President Neel Kashkari, reduced the chances for a Fed interest rate cut."