Jennifer Lee, Senior Economist at BMO Capital Markets, expects the Federal Reserve to keep interest rates unchanged through the end of 2026, with the first cuts not arriving until late 2027. Kevin Warsh, nominated as Fed Chair by President Trump, was confirmed and sworn in on May 22, 2026. BMO projects bond yields averaging around 4.25 percent in a post-cut environment, suggesting a gradual easing rather than aggressive rate reductions. This extended rate hold could redirect capital away from speculative assets like crypto, as government bonds offering above 4 percent yields provide real competition for investors.
Source: Read the original article
