Barclays Predicts Fed Holds Rates High Until 2027

Barclays forecasts no Fed rate cuts until 2027, citing persistent inflation and high oil prices that will keep borrowing costs elevated.

Key takeaways

• Barclays Forecasts Fed Will Maintain High Interest Rates Through 2027
• Barclays is throwing cold water on hopes for lower borrowing costs, projecting the Federal Reserve won’t cut rates until 2027. The British bank’s forecast—released thi...
• This is a sharp break from the market consensus. As of early June, traders priced in the first Fed rate cut by late 2024 or early 2025. Barclays’ call extends that tim...
• The timing is pointed. Recent inflation readings have cooled but not enough for the Fed to declare victory. Headline CPI hovered at 3.4% in April, well above the 2% ta...

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