Inflation’s persistence, the Fed and expansionary fiscal policy

The Fed is under pressure to cut rates, but inflation is still above target — and expansionary fiscal policy could make it even stickier.

RSM’s latest analysis warns:

  1. Early rate cuts risk fueling inflation and weakening the dollar
  2. Fiscal dominance may entrench higher prices
  3. Market expectations matter more than ever

Leaders should keep these risks in mind as they plan for costs, pricing, and capital strategy.

Source: https://rsmus.com/insights/economics/inflation-persistence-the-fed-and-expansionary-fiscal-policy.html