Wall Street Now Expects No Fed Rate Cuts Until 2027

Major brokerages have shifted consensus: the Federal Reserve will keep rates at 3.50%–3.75% through year-end, with cuts postponed to 2027. Goldman Sachs crystallized this view in early June. A strong labor market and sticky inflation expectations have compressed the Fed's urgency to ease. This shift matters for savers and borrowers—mortgage rates and credit costs will remain elevated longer than many anticipated six months ago.