Fed to hold rates through next 2 meetings: Report

The Federal Reserve is expected to keep interest rates unchanged at its next two meetings, as inflation risks persist due to the Trump administration’s unpredictable trade policies, a Reuters survey showed.

The poll, conducted between June 5 and 10, found that economists expect the Federal Open Market Committee (FOMC) to hold the federal funds rate at 4.25% to 4.50% during its June 17–18 meeting.

Over half of respondents anticipate the Fed will resume rate cuts by the end of Q3, likely in September, in line with Wall Street expectations.

Out of 105 economists surveyed, 80% see rates ending the year between 3.75% and 4.00%.

Bill Adams, chief economist at Comerica Bank, said fiscal stimulus from tax legislation and possible spending increases may lead the Fed to maintain higher rates for longer.