The Fed's New Chief Set for Debut, 70% of Economists Pessimistic About Rate Cut

June 9 (Reuters) – A new survey of 102 economists by Reuters shows the Federal Reserve is highly unlikely to adjust its benchmark interest rate for the remainder of 2026. Seventy-two respondents, roughly 70%, expect rates will hold steady in the current range of 3.50% to 3.75%. That share has risen significantly from less than half of economists who held that view last month, and even more so from the roughly one-third who felt the same earlier this year. The survey was conducted between June 4 and June 9. Every economist polled agrees there will be no rate cut at the June 16-17 Federal Open Market Committee (FOMC) meeting, which will mark the first time new Fed Chair Kevin Warsh will lead the gathering. The survey also finds many economists anticipate the Fed will abandon its previous dovish stance in this month’s policy statement. Most financial institutions have either pushed back their rate cut expectations to 2027 or scrapped those expectations entirely, with only a small number considering the possibility of a rate hike.