Will the Fed’s lower bound reach 3.0% or lower before 2027?

As of July 14, 2026, the market gives “Will the Fed’s lower bound reach 3.0% or lower before 2027?” a 96% chance of NO.

YES odds5%
NO odds96%
Volume$291,129
ClosesDecember 31, 2026

Updated July 14, 2026 · Live data from Polymarket

About this market

Persistent inflation pressures from Middle East energy shocks, including May CPI at 4.2% year-over-year, drove the June 2026 FOMC—under new Chair Kevin Warsh—to hold the federal funds target at 3.50%-3.75% for the fourth straight meeting while lifting the median end-2026 dot-plot projection to 3.8%. Nine participants now see at least one hike this year amid revised PCE forecasts of 3.6% for 2026. A resilient labor market with 4.3% unemployment and steady job gains reinforces the higher-for-longer stance, though core PCE near 2.9% offers some offset. Traders monitor the July CPI release, upcoming employment data, and subsequent FOMC meetings for signals on whether policy firming or delayed easing materializes before 2027.

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