Federal Reserve Chairman Kevin Warsh’s strong focus on inflation during last week’s press conference, without offering additional guidance on what conditions could trigger a rate increase, led investors to increasingly expect a future rate hike and pushed bond yields higher.
Many major global brokerage firms now expect the Federal Reserve to keep interest rates unchanged through the remainder of 2026. This marks a shift from earlier expectations at the beginning of the year, when markets had anticipated two rate cuts, as policymakers continue to contend with elevated inflation risks and a resilient labour market.
