Updated
Updated · Bloomberg · Jul 3
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.

Insights

As US and European central banks diverge, is the era of coordinated global economic policy over?
With Mideast conflict and US tariffs looming, which economy is better positioned to weather the coming storm?
Can the Fed tame AI-driven inflation without derailing America's tech boom?