Wall Street Brokerages Forecast Federal Reserve Interest Rate Cuts to Begin in June 2026

Major brokerages expect Fed rate cuts to start this June as labor markets remain stable. While most see two cuts in 2026, some firms predict no changes soon.

Insights:
Major financial institutions have updated their forecasts for the Federal Reserve, now anticipating that the central bank will begin cutting interest rates in mid-2026. Many of these firms have specifically penciled in June for the first reduction, a move that significantly shifts market expectations for the Fed’s policy path and carries broad implications for financial markets and interest-rate-sensitive sectors across the US USUS.
Renovations continue at the Federal Reserve Board building in Washington, D.C., U.S., November 14, 2025. REUTERS/Elizabeth Frantz
Renovations continue at the Federal Reserve Board building in Washington, D.C., U.S., November 14, 2025. REUTERS/Elizabeth Frantz
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