Elara Securities sees Fed keeping rates steady through 2026
Looks like the US Federal Reserve isn't planning to change interest rates anytime soon, at least not until 2026.
According to Elara Securities, inflation is still a bigger worry than jobs, especially with energy and food prices climbing.
They even say the Fed's goal of bringing inflation down to 2% just isn't realistic right now.
Elara Securities projects 2.9% core inflation
Elara has bumped up its forecast for core inflation in 2026 to 2.9%, expecting overall inflation between 3.0% and 3.5%.
They're also predicting unemployment will hit around 4.6%, partly because of slower hiring and more automation.
GDP growth could reach 2.2%, with a slight boost possible if US energy exports pick up due to Middle East disruptions.
Bottom line: the Fed seems focused on fighting inflation, even if it means the job market stays a bit rough.