0639 GMT - Barclays changes its Fed rate cut call from cuts in September this year and March 2027 to just one cut in March of next year. "With the latest baseline from our energy strategist now assuming that energy prices will remain elevated throughout 2026, we expect much slower progress in bringing down inflation and a somewhat slower growth trajectory," Barclays economists say in a note. Barclays no longer thinks the FOMC will be in a position to cut rates this year as core PCE inflation is now projected above 3% through end-2026 and amid a resilient labor market. "After the March 2027 cut, we expect the FOMC to remain on hold for an extended period until new shocks force it to change its policy rate," the bank says. (monica.gupta@wsj.com)

(END) Dow Jones Newswires

May 04, 2026 02:39 ET (06:39 GMT)

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