Ameriprise sees further rate hikes on table despite expected central bank pauses
AMP•The Federal Reserve, European Central Bank and Bank of Japan are expected to hold rates this week, though further increases remain possible. The Fed raised its 2026 core PCE inflation forecast to 3.4% and projects inflation reaching its target in 2029.
1. Rate outlook
The Federal Reserve, European Central Bank and Bank of Japan are expected to hold rates this week, while further increases remain possible. Persistent inflation could sustain pressure to tighten policy; the Fed raised its 2026 core PCE inflation forecast to 3.4% and projects inflation reaching its target in 2029.
2. AI stock focus
Investors will scrutinize cloud demand and companies’ AI spending plans as Alphabet and Microsoft report Wednesday, followed by Amazon on Thursday. Meta Platforms fell 9.4% last week as capital spending pushed free cash flow slightly negative despite strong revenue growth.
