A joint survey by the Federal Reserve indicates that the 2% inflation target is not expected to be achieved anytime soon next year.

A survey conducted jointly by the Federal Reserve Banks of Richmond and Atlanta and Duke University's Fuqua School of Business, according to Odaily Planet Daily, shows that corporate finance executives still consider tariffs a top concern and expect prices to rise by an average of about 4% next year. This result could exacerbate the Federal Reserve's concerns about current price pressures that may prevent it from achieving its 2% inflation target anytime soon. The survey interviewed 548 chief financial officers between November 11 and December 1. The results show that respondents' confidence in their own companies and the overall U.S. economy has declined. The U.S. overall economic optimism index fell to 60.2 from 62.9 (out of 100) in the third quarter, also below the recent high of 66 reached after President Trump won his current term in late 2024. Overall, respondents expect modest growth in employment and the economy in 2026, with the median business forecast for 1.7% job growth (similar to recent surveys) and an annualized economic growth rate of approximately 1.9%. Less than half (40%) of businesses reported hiring for new positions, slightly less than 20% reported not hiring at all, and about 9% expected to lay off employees. (Jinshi)