Institutions: Current Fed Rates Near Neutral, But AI Boom and Metal Price Hikes May Increase Inflation Stickiness

Odaily News Allspring Global Investments' cross-asset solutions team portfolio manager Rushabh Amin pointed out in a research report that the Federal Reserve's current federal funds rate target range of 3.50%–3.75% is already very close to a neutral level and will not further exacerbate inflationary pressures. The current investment boom is closely tied to artificial intelligence, while significant price increases in commodities and industrial metals could make inflation more persistent than expected in 2026. He anticipates that market focus will gradually shift towards the appointment of the next Federal Reserve Chair, with investors generally expecting the new chair to be more inclined towards interest rate cuts. The market widely expects the Federal Reserve to keep interest rates unchanged at this week's monetary policy meeting. (Jin10)