Barclays analysts stated in a report that, amid persistent inflation, the Federal Reserve is expected to keep the federal funds target rate range unchanged at this week's meeting, though interest rate reductions remain possible later this year. They noted, "Amid heightened uncertainty, the Fed's stance is to remain on hold, as resilient demand and elevated inflation support maintaining patience, while policymakers have also signaled reduced confidence in near-term additional rate cuts." The analysts added that if inflation cools as anticipated, they still expect the Fed to gain sufficient confidence by September to begin easing policy. "We continue to anticipate rate cuts this year," they said. According to data from the London Stock Exchange Group (LSEG), money markets are currently pricing in a 10-basis-point rate cut by the Fed in 2026.