Barclays bets on no Fed rate cuts in 2026

Barclays Bank expects the Federal Reserve to hold interest rates steady this year, anticipating that prolonged high energy prices resulting from the conflict in the Middle East will negatively impact inflation and economic growth.

The new forecast comes after the bank previously predicted a 25-basis-point rate cut in September 2026.

These forecasts follow last week's Federal Reserve meeting, where officials kept interest rates unchanged but revealed a growing division regarding the outlook for monetary policy amid the uncertainty stemming from the ongoing conflict in the Middle East.