Fed Meeting Looms: Rate Hikes or Steady as She Goes?

The Federal Reserve's upcoming meeting will be closely watched by financial markets and advisors as they weigh the likelihood of interest rate hikes. According to Jonathan Squires, CEO of risk intelligence platform Tapaas, policymakers are widely expected to leave interest rates unchanged at this week's decision.

However, some observers believe that rate hikes may be looming on the horizon. Melissa Cohn, regional vice president of William Raveis Mortgage, notes that inflation is rearing its ugly head, citing oil prices and higher bond yields as concerns.

The Federal Open Market Committee (FOMC) has kept interest rates steady at 3.5% to 3.75% since the last rate cut in December 2025. The FOMC is expected to hold the federal funds target range steady this week, with a probability of 62.1% of rates being unchanged and a 37.9% chance of a hike.

Raymond James' base case remains that the Fed stays on hold through mid-2027, with the next move being a rate cut in the second half of 2027, according to Larry Adam, chief investment officer at Raymond James.