Consumers shouldn't expect prices to fall anytime soon, top economist warns

The Conference Board’s chief economist Dana M. Peterson said inflation is unlikely to reach the Fed’s 2% target until 2028, with recent market shocks locking in higher consumer prices. The longer timeline suggests a more prolonged period of elevated inflation, potentially delaying disinflation benefits for households. The outlook is mildly negative for rate-cut expectations and could weigh on consumer-facing demand dynamics.

Analysis

The Conference Board’s chief economist Dana M. Peterson said inflation is unlikely to reach the Fed’s 2% target until 2028, with recent market shocks locking in higher consumer prices. The longer timeline suggests a more prolonged period of elevated inflation, potentially delaying disinflation benefits for households. The outlook is mildly negative for rate-cut expectations and could weigh on consumer-facing demand dynamics.