Investors expect Federal Reserve to pause rate cuts until October 2027

8 articles · Updated · Barron's · Apr 29

The CME FedWatch tool shows most investors foresee no Fed rate cut before October 2027, as inflation stays above 2% and oil prices surge.
Citigroup analysts, however, predict three quarter-point cuts in September, October, and December 2026, especially with dovish Warsh expected to lead the Fed later this year.
Persistent inflation and rising energy costs have prompted expectations of a prolonged rate pause, marking the fifth consecutive year inflation has exceeded the Fed's target.

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