Fed Leaves Rates Unchanged, Projects One Cut in 2026

The Federal Reserve left the policy rate unchanged at a 3.50%–3.75% target range in an 11-1 vote and signaled it still expects one rate cut in 2026. The decision represents a modest dovish tilt that will have market-wide implications for rates, FX and risk asset pricing as markets price a single cut in 2026.

Analysis

The Federal Reserve left the policy rate unchanged at a 3.50%–3.75% target range in an 11-1 vote and signaled it still expects one rate cut in 2026. The decision represents a modest dovish tilt that will have market-wide implications for rates, FX and risk asset pricing as markets price a single cut in 2026.