Elevated inflation risks stemming from higher energy prices amid the Middle East conflict have prompted major brokerages including Bank of America and Goldman Sachs to push back or eliminate expectations for Federal Reserve rate cuts in 2026, aligning with CME FedWatch market-implied odds showing roughly 71% probability of no change through year-end. The FOMC has held the federal funds rate steady at the 3.50%-3.75% target range across its first three meetings this year, citing uncertainty around the economic outlook and a March CPI reading of 3.3% year-over-year. With the next policy meeting set for June 16-17 and the labor market remaining resilient, traders are focusing on incoming data releases and any shifts in the Summary of Economic Projections that could alter the path for monetary policy easing.