The economic background factors in the United States make it possible for the Federal Reserve to keep interest rates unchanged until the end of Powell's term.

SmartContractAuditor · 2026-02-24T06:39:48+00:00

The report indicates that despite the strong momentum of the U.S. economy, inflation remains too high, and the Federal Reserve will keep short-term interest rates unchanged until before May. In 2026, economic growth will benefit from factors such as lower interest rates and increased government spending, but labor supply bottlenecks could trigger inflation risks.

SmartContractAuditor

2026-02-24 06:39:48

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Odaily Planet Daily reports that Comerica Bank Chief Economist Bill Adams stated in a report that the Federal Reserve FOMC members believe that the U.S. economy is showing good growth momentum, but inflation remains too high. Against this backdrop, the Fed is expected to keep short-term interest rates unchanged before Powell’s term ends in May. In 2026, economic growth will be driven by favorable factors such as lower interest rates, increased government spending, last year’s rate cuts by the Federal Reserve, and improvements in the real estate market. The ongoing AI boom and the tax refunds from the repeal of reciprocal tariffs by the Supreme Court last week will also further support economic growth. The biggest downside risk to economic growth comes from labor supply bottlenecks, which could trigger a rebound in inflation. (Jin10)

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