Recent hotter-than-expected April 2026 CPI readings and resilient consumer spending have shifted trader sentiment sharply against near-term Fed easing, with markets now assigning the highest probability to zero rate cuts for the remainder of 2026. The FOMC maintained the federal funds target range at 3.50–3.75 percent at its April 28–29 meeting for the third consecutive time, citing balanced risks to its dual mandate amid sticky price pressures and solid economic momentum. CME FedWatch futures reflect diminished odds of any cut this year, while some participants now price a modest chance of a 25-basis-point hike by year-end. The June 17–18 FOMC meeting and subsequent inflation and employment releases will provide key updates on whether the data trajectory supports holding policy steady or prompts a reassessment of the rate path.