Cathie Wood, CEO of ARK Invest, forecasts that the US Federal Reserve will not raise interest rates in 2026, citing an economy described as a coiled spring driven by AI-powered productivity gains and falling inflation. She anticipates inflation at 1.7% in January 2026, with a possible scenario of 0 to 1%, and projects annual productivity growth of 4 to 6%, well above the historical average of 1.5 to 2%. She also expects unemployment to rise above 5%, which, according to her, would encourage the Fed to ease monetary policy. On the fixed income side, inflation near zero would be bullish for long-duration Treasuries.
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