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Market Commentary

The Fed's Next Move Could Surprise Everyone

Why the Federal Reserve's next move may defy market expectations.

Doug Kass·FEB 5, 2026, 4:00 PM UTC
fed surprise

With inflation proving stickier than expected and the labor market showing resilience, the Federal Reserve finds itself in a difficult position. The market is pricing in rate cuts later this year, but the data may not cooperate.

I believe the Fed's next move will surprise consensus. Rather than cutting rates in the spring as many expect, the central bank may hold rates steady well into the second half of 2026.

#Federal Reserve