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Fed Rates Seen on Hold at April Policy Meeting

The market is leaning toward no rate cuts in 2026.

Federal Reserve officials are meeting this week to decide the course of interest rates, as the Iran war continues to complicate the inflation outlook. Analysts expect the Fed to keep its rate target unchanged at its current range of 3.50%-3.75% at its next meeting, scheduled for April 28-29. “It should be a pretty boring meeting as it relates to the impact on interest rates or changes to the Fed’s balance sheet,” says Lawrence Gillum, chief fixed income strategist for LPL Financial.

That’s quite a change from the beginning of the year, when the market was expecting more rate cuts after the central bank reduced its target on Dec. 10. Now “the market is pricing in no rate cuts until the middle of next year,” Gillum says.

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