The Fed evidently isn’t too concerned about inflation — but just wait until next year
1. The Fed lowered the policy rate to 4%-4.25%. Rate cuts may continue into 2026. 2. Deteriorating payroll gains indicate a weakening labor market, adding volatility risk. 3. Core PCE inflation remains high, risking further tightening from the Fed next year. 4. Consumer spending shows strength, countering inflation concerns but may pressure rates. 5. Expectations of rate cuts could limit economic growth potential in upcoming years.