Pryce's Blerina Uruci said in a report that the Federal Reserve's monetary policy path for the second half of 2026 is still highly uncertain. The US chief economist said, “My biggest difference with the market is the pricing of interest rate cuts in the first half of 2026. I think this is too loose. “It depends not only on the evolution of macro data, but also on the reaction function of the new Federal Reserve leadership,” she said. If inflation accelerates again starting this quarter, and growth is steady — as Uruci expected — then the Federal Reserve will not be able to deliver on the market's pricing for further relaxation next year. She said that the Federal Reserve may suspend interest rate cuts after the December meeting.

Pryce's Blerina Uruci said in a report that the Federal Reserve's monetary policy path for the second half of 2026 is still highly uncertain. The US chief economist said, “My biggest difference with the market is the pricing of interest rate cuts in the first half of 2026. I think this is too loose. “It depends not only on the evolution of macro data, but also on the reaction function of the new Federal Reserve leadership,” she said. If inflation accelerates again starting this quarter, and growth is steady — as Uruci expected — then the Federal Reserve will not be able to deliver on the market's pricing for further relaxation next year. She said that the Federal Reserve may suspend interest rate cuts after the December meeting.