What to expect from Federal Reserve in 2026?

Doha, Qatar: At the beginning of 2026, QNB s baseline macroeconomic view for the United States remained broadly constructive. According to QNB Econ...

Doha, Qatar: At the beginning of 2026, QNB's baseline macroeconomic view for the United States remained broadly constructive. 

According to QNB Economic Commentry, latest  powerful wave of artificial  intelligence (AI) related capital expenditures, improving productivity dynamics, and the gradual normalisation of shelter inflation were expected to create a “Goldilocks” environment for the US economy. 

In such a scenario, economic growth would remain robust while inflation continued to moderate. This combination would be further supported by the Federal Reserve (Fed) to proceeding with the monetary easing cycle that began in September 2024, gradually bringing policy down to more accommodative levels.

However, the optimistic narrative has been challenged early in the year. A series of adverse  developments has raised question marks about the macroeconomic outlook. 

These include renewed  trade policy tensions, increased volatility in US foreign policy, and major disruptions in global  commodity markets following the geopolitical shock. o enact rate hikes this year.