Markets sharply reduce odds of 2026 Fed rate cut as hike chances rise

13 articles · Updated · Barron's · Apr 29

Markets now price just a 1.3% chance of a 2026 rate cut, down from 18% yesterday, and an 11% chance of a hike, up from 0%.
The shift follows comments from Fed Chair Powell and three Fed presidents expressing concern over persistent inflation above the 2% target and disagreement with the Fed's easing bias.
Stocks reacted negatively, with the S&P 500 falling 0.4% as traders adjusted expectations for future Fed policy amid ongoing inflation pressures.

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