Prominent economist Torsten Slok expects interest rates to remain elevated for an extended period, a view consistent with Federal Reserve policy. The federal funds target range is currently 3.50% to 3.75%, with no immediate plans for rate cuts. CME FedWatch data indicates markets are considering additional rate hikes later in 2026, while pricing suggests a lower probability that the Fed will pause hikes at upcoming meetings and a low probability of rate cuts. The restrictive monetary stance continues to affect borrowing costs for mortgages, corporate financing and other sectors. Federal Reserve decisions in June, July and September will be closely watched, alongside inflation, unemployment and comments from key officials including Chairman Kevin Warsh, for signs of policy changes that could support or challenge the higher-for-longer outlook.