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Peterson Institute for International Economics: Risk of Higher U.S. Inflation in 2026
January 21, 2026
WASHINGTON, Jan. 21 -- The Peterson Institute for International Economics issued the following commentary on Jan. 20, 2026:

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The risk of higher US inflation in 2026

By Peter Orszag (Lazard) and Adam S. Posen (PIIE)

The consensus view among forecasters is that inflation will continue its gradual descent toward the Federal Reserve's 2 percent target through 2026. Similarly, market pricing suggests investors believe the Fed has largely w . . .

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