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

BlockBeats News, June 9th. According to a Reuters survey of 102 economists, the Federal Reserve is highly unlikely to adjust the benchmark interest rate for the remainder of 2026. A total of 72 individuals (about 70%) believe that the rate will remain in the current range of 3.50% to 3.75%, a proportion that has significantly increased from the previous month when it was less than half and even earlier when it was about a third.

The survey was conducted between June 4th and June 9th. All the economists surveyed unanimously agree that there will be no rate cut after the Federal Open Market Committee meeting on June 16th and 17th, which will be chaired by the new chair, Kevin Warsh, for the first time.

The survey also indicates that many economists expect the Fed to abandon its previous dovish stance in this month's policy statement. Most institutions have postponed their rate cut expectations to 2027 or completely abandoned such expectations, with only a few considering the possibility of a rate hike.