HomeMarketsFed WatchFed's Tightrope Act for 2026: Inflation Risks Amid Booming A.I. Trade

Fed's Tightrope Act for 2026: Inflation Risks Amid Booming A.I. Trade

Christopher Hodge offers his outlook on the market's trajectory into 2026. He notes a dovish Federal Reserve, expecting continued rate cuts, and robust consumer balance sheets, despite some stress at lower income levels. Finally, Hodge discusses the interplay between Federal Reserve credibility, inflation expectations, and the ongoing strength of the equity market, particularly the tech sector.

Market On Close

22 Dec 2025

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