Fed Seen Hiking Again in 2026 as ECB May Already Be Done
Updated
Updated · Bloomberg · Jul 3
Fed Seen Hiking Again in 2026 as ECB May Already Be Done
3 articles · Updated · Bloomberg · Jul 3
Summary
Two French chief economists said the Federal Reserve will still need to raise rates this year, even after fresh US data pointed to labor-market weakness.
US inflation pressures, they argued, remain strong enough to outweigh Thursday’s softer jobs signal and keep the Fed on a tightening path.
The European Central Bank faces a different backdrop: the economists said it is in no rush to tighten further and may already have finished.
The split outlook points to a widening policy divergence between the two central banks in the aftermath of the war-driven economic shock.