The bank projects US inflation at 3.8% and GDP growth at 2.4% in 2026, with steady Fed rates.
BNP Paribas expects the US dollar to depreciate gradually against the euro through 2026, citing above-potential economic growth. The bank forecasts US GDP at 2.4% and inflation overshooting at 3.8% for the year.
The Federal Reserve’s target range for the Fed Funds rate is projected to remain steady at 3.5%-3.75%, as the FOMC adopts a balanced policy stance. This outlook follows expectations of sustained economic expansion despite elevated inflation.
No immediate market reaction was specified in the forecast.