Fed's Recent Statement Reflects Hawkish Stance, Says MAI Capital Strategist

The Federal Reserve's latest statement and press conference have been notably hawkish, according to PANews. Chris Grisanti, Chief Market Strategist at MAI Capital Management, highlighted that the description of economic activity has been upgraded from 'moderate' to 'robust,' and references to employment downside risks have been removed. During the press conference, Fed Chair Jerome Powell noted that after a period of weakness last year, the employment situation has 'stabilized.' While inflation is showing signs of stability, it remains 'slightly elevated.' Overall, the Fed's focus has shifted from unemployment to inflation. Grisanti believes that interest rates are unlikely to be cut in the short term. Furthermore, given the strong market performance and ongoing economic strength, he suggests that rate cuts may not occur in 2026, a stance that is more hawkish than current market expectations.