Will U.S. Inflation Slow in 2026?

In this episode of "Thoughts on the Market," Seth Carpenter, along with Mike Gapen and Chetan Ahya, discusses the economic outlook, primarily focusing on the U.S. They delve into the impact of tariffs and immigration restrictions on inflation and economic growth. Mike Gapen suggests that tariffs haven't been fully absorbed by the economy, potentially leading to higher inflation, while immigration controls may keep service prices firm. The conversation also addresses the Federal Reserve's strategy, viewing it as a recalibration to balance risks to inflation and the labor market, and touches on the debate around the Fed's independence. Chetan Ahya provides insights on India's growth outlook, noting the effects of trade tensions and domestic policy actions aimed at stimulating demand.