Recent hotter-than-expected inflation readings, including March 2026 CPI rising to 3.3% year-over-year amid a sharp energy-price surge tied to Middle East developments, have shifted trader sentiment away from near-term Federal Reserve easing. With the federal funds rate held steady at the 3.50%-3.75% target range through the April FOMC meeting and resilient labor-market data supporting wage growth near 3.6%, market-implied odds now favor a prolonged pause or even a potential hike by year-end over any 25-basis-point cut. Analysts at major banks have revised forecasts, pushing the first easing into late 2026 or 2027, while the June 16-17 FOMC meeting and upcoming May CPI and payrolls releases remain key near-term catalysts that could further delay policy relief.