Is this what stagflation feels like?

Inflation has re-emerged as a key Fed concern amid recent energy price shocks, lowering the odds of additional rate cuts and increasing market expectations for tighter policy. Some experts now see the possibility of the Federal Reserve raising rates in 2026, a shift that raises risk for duration and risk assets and should be reflected in portfolio positioning.

Analysis

Inflation has re-emerged as a key Fed concern amid recent energy price shocks, lowering the odds of additional rate cuts and increasing market expectations for tighter policy. Some experts now see the possibility of the Federal Reserve raising rates in 2026, a shift that raises risk for duration and risk assets and should be reflected in portfolio positioning.