The Federal Reserve’s campaign against inflation is approaching its final phase, with underlying price pressures expected to remain contained through this year and next, according to BeiChen Lin, a senior investment strategist at Russell Investments.
In a report cited by Jin10, Lin said that while inflation victory is not yet complete, the “finish line is coming into view.” He pointed to a labor market that is gradually moving back toward balance, helping to moderate inflation in the services sector.
Lin added that inflation driven by tariffs is likely to gradually subside in the second half of the year, easing a key source of recent price pressure. At the same time, subdued activity in the U.S. real estate market is expected to continue acting as a drag on inflation.
Even if the U.S. economy maintains trend-level growth this year—or slightly exceeds it—Lin said inflation should remain benign and manageable through 2025 and into 2026.
The assessment supports broader market expectations that inflation risks are receding, potentially giving the Federal Reserve greater flexibility in its policy outlook as price stability improves.