Experts Say Markets Will Focus on the Fed's Core Inflation Assessment

Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, said in a report that the market may closely watch the Federal Open Market Committee's assessment of core inflation because the Fed has stopped providing forward guidance since Warsh became chair. According to Jin10, he said the Fed's policy statement may continue to show a mixed picture of inflation drivers, with relatively moderate increases in home prices and rents and fading inflation effects from the 2025 tariff hikes, while Middle East tensions, energy-price rebounds caused by disruptions to Russian exports, new tariff measures, and AI-related demand pushing up electronics prices could still add to price pressures. He also said labor-supply bottlenecks are raising some service-sector costs, such as home health care and caregiving services, and market participants believe the Fed's next policy judgment will depend on whether these short-term shocks turn into more persistent core inflation pressure.