neutral
Recently
US inflation eases further, complicating Federal Reserve outlook
Cooling US inflation reduced pressure on prices but left the Federal Reserve cautious on the timing and scale of future rate cuts.
US inflation moderated further, with headline consumer prices rising at a slower pace than expected, reinforcing signs of cooling price pressures. Despite the softer data, Federal Reserve officials indicated that policy decisions would remain data dependent, with no urgency to cut rates aggressively. Markets reacted cautiously as investors reassessed expectations for monetary easing in 2026. Economists noted that shelter and services inflation remain sticky, limiting the scope for rapid policy shifts.