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MarketWatch Quotes Stephen Douglass on Inflation Outlook

% on its own

Fed Chair Kevin Warsh led the FOMC in raising interest rates for the first time in three years, and we’re expecting this to continue with one additional hike in December and possibly one more in March. Federal Reserve leaders believe slightly higher interest rates will help them achieve their 2% target by 2029, and many economists believe it’s possible.

NISA Chief Economist Stephen Douglass was quoted in a MarketWatch article offering his outlook on the path back to 2% inflation.

Stephen was quoted as saying, “The Fed was on track to get to 2% before the tariffs. We think inflation is going to return to the low 2% range over the next few years largely on its own.” He also addressed the trajectory of goods prices, noting, “We see goods inflation going back to something negative.”

The article explores the Fed’s ability to manage demand-side inflation while acknowledging the limits of monetary policy in addressing supply-side shocks like tariffs and oil prices.

Read the full article here.

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