The Fed's Latest Inflation Outlook Offers Wall Street Its First Relief in Months

The Federal Reserve's latest economic projections indicate interest rates will rise to 3.8% by year-end to combat persistent inflation expected at 3.6% in 2026. However, the Fed notes the economy remains resilient with solid growth, strong productivity, and stable employment. While inflation should cool significantly by 2027-2028, allowing rates to fall, the article cautions that stocks remain technically overbought and a market correction is due.