FOMC likely to hold rates amid inflation, energy price concerns and geopolitical risks.

The upcoming Federal Open Market Committee (FOMC) meeting on April 28-29, 2026, is expected to keep interest rates steady at 3.50-3.75%. Elevated inflation and rising energy prices, particularly due to tensions in the Strait of Hormuz, support a pause in rate hikes. The Federal Reserve acknowledges limited influence over geopolitical risks affecting markets. Meanwhile, stock indices have rebounded to record highs, and cautious investors may consider floating-rate bonds for yield. Consumer defense stocks like Procter & Gamble and Johnson & Johnson are favored, while defense and aerospace sectors remain under watch amid evolving conflict dynamics.