Fed Official Warns: High Inflation Expected, No Rate Cuts Likely Before 2026

Inflation Pressures Linger as Fed Official Signals Tighter Policy Outlook

In a recent speech, a senior Federal Reserve official emphasized that inflation remains persistently high, mainly due to ongoing tariff-related pressures. He noted that there has been little sign of inflation easing and predicted it will remain elevated through the first half of 2026.

Resilient Economy, But No Room for Easing Policy

Despite the absence of additional fiscal stimulus, the U.S. economy continues to grow, demonstrating strong self-regulating capacity. He stated that the current economic landscape does not support a rapid loosening of monetary policy and anticipates no rate cuts before 2026.

Stable Labor Market Supports Fed's Cautious Stance

There are currently no indications of labor market weakness, reinforcing the Fed’s confidence in maintaining current interest rate levels. Policy decisions will remain data-dependent, according to the official, rather than being driven by a fixed schedule.

As his term nears its end, his remarks serve as a guide for successors and reflect the Fed’s ongoing efforts to balance inflation control with economic stability.