Federal Reserve Rate Cuts Unlikely Until June, Say Wells Fargo Economists – Here’s Why

March Rate Cut Unlikely as Labor Market Stabilizes, Wells Fargo Sees 2 More Cuts in 2026

Solid consumer spending, 70K average monthly payroll growth and core PCE easing to 2.6 percent by Q4 shape updated U.S. outlook After a year marked by policy swings and uneven data, the U.S. economy is entering 2026 on firmer footing than many forecasters anticipated. In its February 2026 outlook, Wells Fargo Economics stated that real GDP growth remains on a “solidly positive trajectory,” supported by steady consumer spending and a strengthenin…

Why Wells Fargo Believes The Fed Will Hold Rates Steady Until June?

The debate around interest rates has taken another turn. Investors entered the year expecting early relief from the Federal Reserve. Many believed rate cuts would arrive as inflation cooled and growth stabilized. However, fresh economic data now tells a different story. Wells Fargo has shifted the narrative by signaling that rate cuts may not come before June. The bank points to stronger than expected US jobs data and steady labor market conditi…

Federal Reserve Rate Cuts Unlikely Until June, Say Wells Fargo Economists – Here’s Why

Wells Fargo economists say the Federal Reserve is unlikely to cut interest rates before June following stronger-than-expected labor data and cooling inflation. The bank points to January payrolls rising by 130,000, topping expectations and lifting the three-month average to 73,000, while the unemployment rate fell to 4.3%. “The upshot of a mini-government shutdown last week was the somewhat unusual alignment of indicators that brought fresh data…