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Most economists expect the Fed to hold rates steady through 2027

In a Reuters poll, 94 of 104 economists forecast the benchmark rate will stay at 3.50% to 3.75% at the September 15-16 meeting.

Reported · Written up by our desk · Central Banks

A Reuters poll of 104 economists conducted between Aug. 12 and Aug. 17 found broad agreement that the Federal Reserve will keep interest rates unchanged at its Sept. 15-16 meeting and maintain that stance for the rest of the year.

The survey showed 94 economists expect the Fed to leave its benchmark rate at the 3.50% to 3.75% range, and nearly 80% of respondents, or 80 economists, forecast no change through year end.

Poll medians also indicate rates would remain at current levels through the end of 2027. For inflation, economists expect Personal Consumption Expenditures (PCE) to average 3.5% this year, and they see inflation staying above the Fed’s 2% target until at least 2028.

The Fed’s policy decisions are made by the Federal Open Market Committee at eight meetings a year, with the central bank using interest-rate adjustments as its main tool, since higher rates typically raise borrowing costs and can support the US dollar.

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