Traders Bet Fed Will Hold Rates Steady Through 2026

Markets expect the Fed to keep rates steady through 2026 after March inflation data met expectations. Traders see a one-in-three chance of a cut by December.

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Financial market participants in the United States maintained their expectations on Friday that the Federal Reserve will keep interest rates at their current levels through the end of 2026. This sentiment follows the release of data from the Labor Department showing that consumer prices rose in March, aligning with previous forecasts.

Renovations are seen at the Federal Reserve Board building in Washington, D.C., as captured in late 2025. REUTERS/Elizabeth Frantz/File Photo
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