Fed Policy Pivot: Wall Street Expects Zero Rate Cuts Through 2026
Major financial institutions including J.P. Morgan now forecast the Federal Reserve will maintain rates at 3.50%-3.75% through all of 2026, with potential hikes in 2027. This represents a dramatic shift from earlier expectations, driven by persistent core inflation near 3% and the inflationary impact of fiscal stimulus and tariffs.
The 'higher for longer' monetary policy regime will reshape asset allocation strategies and fundamentally alter corporate financing costs and investment decisions across all sectors.
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