Natixis expects the Federal Reserve to keep interest rates unchanged throughout 2026

Odaily Planet Daily News: Christopher Hodge, former chief economist at the New York Fed and current chief US economist at Natixis, stated that the Fed Chair Warsh's aggressive hawkish start may create a "credibility trap." Christopher Hodge pointed out that Warsh's aversion to "forward guidance" and the "dot plot" is reasonable given the current uncertain environment, but it also reveals a risk bias. If CPI data in the coming months experiences noise due to short-term disruptions such as tariffs or energy shocks, Warsh may be forced to raise interest rates due to his previous stance. Natixis expects the Federal Reserve to keep interest rates unchanged throughout 2026.