Institutions: Current Fed rates are near neutral, but the AI ​​boom and rising metal prices may increase inflation stickiness.

In a research report, Rushabh Amin, Portfolio Manager of the Cross-Asset Solutions Team at Allspring Global Investments, pointed out that the Federal Reserve's current target range for the federal funds rate of 3.50%–3.75% is very close to neutral and will not further exacerbate inflationary pressures. The current investment boom is closely related to artificial intelligence, while the significant rise in commodity and industrial metal prices may lead to more sticky inflation in 2026 than expected. He anticipates that market focus will gradually shift to the appointment of the next Federal Reserve Chairman, with investors generally expecting the new chairman to be more inclined to cut interest rates. The market currently widely expects the Federal Reserve to keep interest rates unchanged at this week's monetary policy meeting. (Jinshi)