Fed's Rate Cut Delayed: Global Economy Braces for Impact

The Federal Reserve's interest rate cut may be delayed until mid-2026, according to a prediction by a Bank of Paris Markets360 analyst. This view has been held since early December last year, with part of the forecast based on tariff expectations. Recent indications suggest that the Fed may have to revise up its initial tariff estimates. The money market is currently pricing in a Fed rate cut in September.

The delay in the Fed's rate cut could have significant implications for the global economy. A later rate cut would mean that the Fed is more concerned about inflation and less willing to stimulate economic growth. This could lead to a more cautious approach to monetary policy, with the Fed waiting for more concrete signs of economic weakness before acting.

The delay in the Fed's rate cut could also have implications for the U.S. dollar. A later rate cut would mean that the Fed is less likely to engage in quantitative easing, which could lead to a stronger dollar. This could have implications for U.S. exports and for the global economy, as a stronger dollar could make it more difficult for other countries to repay their debts in dollars.

The delay in the Fed's rate cut could also have implications for the U.S. stock market. A later rate cut would mean that the Fed is less likely to provide liquidity to the market, which could lead to a more volatile stock market. This could have implications for investors, who may be more cautious about investing in the stock market if they expect more volatility.

The delay in the Fed's rate cut could also have implications for the U.S. housing market. A later rate cut would mean that mortgage rates are likely to remain higher for longer, which could make it more difficult for first-time buyers to afford a home. This could lead to a slowdown in the housing market, which could have implications for the broader economy.

The delay in the Fed's rate cut could also have implications for the U.S. bond market. A later rate cut would mean that bond yields are likely to remain higher for longer, which could make bonds less attractive to investors. This could lead to a sell-off in the bond market, which could have implications for the broader economy.

The delay in the Fed's rate cut could also have implications for the global economy. A later rate cut would mean that the Fed is less likely to provide liquidity to the global economy, which could lead to a more cautious approach to