Fed’s Bostic expects no rate cuts in 2026 due to worries GOP tax bill might fuel inflation

Atlanta Federal Reserve President Raphael Bostic stated that he does not anticipate any interest rate cuts in 2026. This outlook is primarily driven by concerns that a potential tax bill from the Republican Party could stimulate economic growth and, consequently, inflation, thereby preventing the Fed from easing monetary policy. Bostic's comments suggest a more hawkish stance on future rate decisions, factoring in potential fiscal policy impacts. The development arrives against a backdrop of shifting risk appetite, where investors are reassessing exposure to markets and weighing the second-order impact on adjacent sectors. Investors are watching the broader tape for follow-through. Live pricing was not available at the time of writing, but positioning data and order-book signals will shape the next session. Positioning across funds, options skew and credit spreads typically respond first; equity price action lags but tends to confirm the direction once volume returns. Readers should treat the immediate move as a sentiment proxy rather than a final verdict on fundamentals. For longer-horizon allocators the more important question is whether this changes the trajectory of cash flows, regulation or competitive dynamics. If it does, multiple compression or expansion follows; if it does not, the reaction fades within a few sessions and the prior trend reasserts itself. What to watch next: forthcoming earnings prints, central-bank guidance and any official commentary that either validates or pushes back on the market's interpretation. Reported by MarketWatch and contextualised by the Global Investing News desk under Mark Grundell.