Fed Expected to Stay on Hold Next Week -- Market Talk

0542 GMT - Incoming data point to a Federal Reserve staying on hold at its July meeting, and also a likelihood of keeping rates unchanged for the remainder of the year, say Morgan Stanley strategists in a note. "The Fed is running out of patience for above-target inflation," they write. "Inflation has to perform in the coming months--we think it will--or the Fed will switch to hikes later this year," the strategists say. Money markets price in almost two Fed rate hikes by year end, according to LSEG data. However, decelerating inflation may keep the Fed on hold this year, with the fed funds rate at 3.50%-3.75%. "We expect disinflation to keep the Fed on hold this year."(emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 01:42 ET (05:42 GMT)