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2025-12-17 20:56:10
[US Business Executive Survey: Inflation Expectations Remain Stubborn, Trump's Tariff Rhetoric Remains Top Concern] ⑴ A Federal Reserve survey of 548 corporate CFOs shows that respondents expect prices to rise by an average of 4.2% in 2026, well above the Fed's 2% inflation target. ⑵ Overall optimism reflected in the survey has declined, with the overall optimism index for both the US economy and the prospects of respondents' own companies falling to 60.2 from 62.9 in the third quarter. ⑶ Trump's tariff rhetoric and trade policy risks remain the top concern for business executives, although their focus has eased from its peak in the second quarter of this year. ⑷ Businesses' outlook for 2026 is moderate, expecting job growth of 1.7% and an annual economic growth rate of approximately 1.9%, but only 40% of companies said they are hiring for new positions. ⑸ The survey results may exacerbate the Fed's concerns about the persistence of inflation, as they show that corporate pricing expectations remain high, and the process of inflation falling back to the target level may take longer than expected.
