James McCann

“seemingly indefatigable U.S. consumer and a nascent AI investment boom continue to drive the U.S. economy, with growth running well above trend.”

James McCann · said 2026-10-29 · reported 2026-10-29

McCann said the U.S. consumer and an AI investment boom are driving the economy above trend growth.

“Chair Warsh was reluctant to provide strong signals at the FOMC meeting yesterday, a bullish tone on growth, dissents in favor of a hike and the message that financial conditions were not tight all point to a return to tightening in December and potentially one more interest rate hike in 2027, in our view.”

James McCann · said 2026-10-29 · reported 2026-10-29

McCann added that signals from the FOMC meeting point to a return to tightening in December and potentially another rate hike in 2027.

“Admittedly there are some headwinds incoming, which should cool activity rates a little towards the end of the year as oil prices spike and financial conditions tighten. However, the economy looks in good shape, which might make investors question again why the Fed did not raise rates yesterday, especially with PCE moving further above the Fed's target to 3.6% in September,”

James McCann · said 2026-10-29 · reported 2026-10-29

McCann noted incoming headwinds including oil price spikes and tightening financial conditions, but questioned why the Fed did not raise rates given PCE above target.