The Federal Reserve just revised their 2026 outlook, and the numbers tell an interesting story. They're now projecting PCE inflation to land at 2.4% by end-2026—down from the previous 2.6% estimate. Core inflation? Also dropping to 2.5% from 2.6%.

But here's the kicker: GDP growth expectations got a serious boost. They're now calling for 2.3% expansion in 2026, up sharply from the earlier 1.8% forecast. Meanwhile, long-run growth projections remain anchored at 1.8%.

So we're looking at a scenario where inflation cools slightly while growth accelerates in the near term. That's the kind of macro backdrop that could shift sentiment across risk assets.