Fed Eyes Stable Rates Amid Inflation Concerns

The Federal Reserve is expected to keep its key interest rate steady for the rest of 2026, according to a Reuters poll. A majority of economists, 66%, see a high chance of a rate hike this year.

This decision comes despite high inflation, which has been running at about double the Fed's 2% target for over five years. Markets are pricing in two rate rises by end-March next year due to concerns about oil prices.

Fed Chairman Kevin Warsh has reiterated his focus on bringing inflation back to target. However, economists are divided, with some expecting no change through year-end and others predicting at least one rate increase this year.