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

Golden Finance reports that on April 27th, Barclays Bank analysts stated in a report that, amid still-high inflation, the Federal Reserve is expected to keep the federal funds target interest 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 short term.” The analysts noted that if inflation falls as expected, they anticipate the Federal Reserve will gain enough confidence to start easing policy around September. “We still expect rate cuts 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. (Jin10)