The Federal Open Market Committee held the federal funds rate target range steady at 3.50%–3.75% after its April 2026 meeting, citing solid economic expansion and inflation that climbed to 3.3% in March amid elevated energy prices tied to Middle East developments. Market-implied pricing from CME Fed Funds futures now assigns virtually no probability to any rate cut through year-end, a sharp reversal from earlier expectations of one or two reductions as growth forecasts have held above 2% and the labor market shows resilience. The June FOMC meeting, which will include fresh economic projections and the dot plot, represents the next key catalyst that could shift trader consensus if incoming CPI or employment releases moderate inflation pressures or reveal softening demand.