Weekly View

When a Gradualist Fed Collides with Hot Inflation

October 19, 2026

As we look forward after last week’s AI jitters, interest-rate outperformance, and geopolitical developments, we continue to see a U.S. economy where elevated inflation shows little signs of retreating. Yet, Fed officials appear set on taking a gradual tightening approach, which we believe carries policy ramifications heading into 2027.

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