Barclays: The Federal Reserve is expected to hold steady this week, but may still cut interest rates later this year

Odaily Planet Daily News: Barclays Bank analysts stated in a report that, against the backdrop of still-high inflation, the Federal Reserve is expected to keep the federal funds target rate range unchanged at this week’s meeting, but there is still a possibility of rate cuts this year. The analysts said, “In an environment of high uncertainty, the Federal Reserve tends to hold steady, with strong demand and still elevated inflation supporting its patience. Policymakers also signal weakened confidence in further rate cuts in the near term.” The analysts indicated that if inflation falls as expected, they anticipate the Fed will gain enough confidence to start easing policy around September. “We still expect a rate cut this year.” According to LSEG data, the money market is currently pricing in a 10 basis point rate cut by the Federal Reserve in 2026.