Softer Inflation And Expectations For Stronger Q1 Economic Growth Push The Fed Toward A Pause

2026-02-25 11:25:00 ET

By James Picerno

The slower-than-expected growth rate for the US economy in Friday’s fourth-quarter GDP report suggests the Federal Reserve may cut rates sooner than expected. But Fed funds futures continue to price in a pause for the next two policy meetings. Support for this outlook comes from expectations for a rebound in economic growth for this year’s first quarter, along with a slightly softer inflation trend for January....

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