The Federal Reserve’s war on inflation was supposed to be winding down by now. Instead, it’s settling in for a longer stay.
A Reuters poll conducted from June 4-9 found that 72 out of 102 surveyed economists, roughly 70%, expect the Fed to keep its benchmark federal funds rate parked at 3.50% to 3.75% through the end of 2026.
The numbers behind the hold
April’s Consumer Price Index came in at 3.8% year-over-year. Geopolitical tensions have driven energy price spikes, and those costs ripple through everything from shipping to groceries.
The May jobs report showed a gain of 172,000 payrolls. That’s nearly double what economists initially expected.
