U.S. Economic Backdrop Makes It Difficult for Fed to Signal Rate Cut -- Market Talk

Dow Jones13:14

0514 GMT - Resilient growth, stronger labor demand and pipeline inflation pressures make it increasingly difficult for the Federal Reserve to signal rate cuts, Russell Investments' Paul Eitelman says in a note. "But we don't expect them to go any further than that," the global chief investment strategist says. The announced U.S.-Iran deal timeboxes the commodity shock, reducing the risk that a temporary energy spike becomes a broader inflation problem, he says. One-year forward inflation have dropped back to preconflict levels and, unlike in 2022, the labor market isn't overheated and pressuring service prices, he says. Russell Investments' outlook has consistently favored the Fed on protracted hold for 2026, he says. (emese.bartha@wsj.com)

 

(END) Dow Jones Newswires

June 16, 2026 01:14 ET (05:14 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment