Inflation Set to Peak in H1 2026, Says Fed Official

A top Federal Reserve official has signaled that price pressures should reach their highest point during the first half of 2026. What's more encouraging for markets? The underlying inflation trends are looking solid right now—no sign of broad-based pressures building underneath the surface.

The labor market tells a similar story. No rapid deterioration detected so far, which means the employment backdrop remains reasonably firm. This trifecta of factors—controlled inflation expectations, stable underlying trends, and resilient jobs data—could shape how markets price in future policy moves and asset valuations over the coming quarters.