Will Fed Policy Ignite a Sustained Market Rally in 2026?
Antara Bhattacharyya
Markets anticipate Fed rate cuts in 2026, easing borrowing costs, boosting liquidity, and reviving risk appetite across equities globally sustainably.
Inflation trajectory will guide policy durability, as stubborn price pressures could limit aggressive easing and cap rally momentum, as well as longer-term expectations.
Corporate earnings growth must validate monetary support, with margins, demand, and capital expenditure driving equity re-ratings across major global sectors.
Geopolitical stability and fiscal discipline will influence investor confidence, shaping whether Fed-driven optimism translates into sustained rallies across global markets.
A sustained 2026 rally likely needs coordinated easing, soft landing, and resilient growth rather than policy alone driven by fundamentals.