Fed Hikes? Maybe Not

Durham News Today | 2 Min News | The Daily News Now! · Jun 28, 2026 · 1m

Fed policymakers are signaling possible rate hikes despite stubborn inflation, but economist Greg Daco argues that monetary tightening won’t fix supply-driven price pressures like energy costs and AI-related bottlenecks. With real incomes stagnant and the economy fragile, Daco predicts the Fed will hold rates steady — even as inflation remains above target — warning that further hikes could harm growth without solving root causes. Wall Street braces for more rate moves, but Daco’s view suggests a prolonged high-rate environment may loom, weighing on growth stocks and consumer spending…