Will the Fed Cut Rates This Year?

The Fed held policy steady while a recent oil price spike has increased inflationary pressure and is rapidly reducing market expectations for a 2026 rate cut. That combination — slowing growth with rising inflation — raises the risk of higher-for-longer rates, tighter financial conditions and stagflationary pressure for portfolios.

Analysis

The Fed held policy steady while a recent oil price spike has increased inflationary pressure and is rapidly reducing market expectations for a 2026 rate cut. That combination — slowing growth with rising inflation — raises the risk of higher-for-longer rates, tighter financial conditions and stagflationary pressure for portfolios.