0607 GMT - From the Federal Reserve's perspective, the U.S.'s economic growth momentum looks fine but inflation is still too high, Comerica Bank's Bill Adams says in a note. Against this backdrop, the Fed can be expected to hold short-term rates steady until Chair Jerome Powell's term ends in May, the chief economist says. Economic growth will ride tailwinds in 2026 from lower rates, more government spending, the Fed's rate cuts last year and an improving housing market, he says. Further support is expected to come from the continuing artificial intelligence boom, and refunds of the reciprocal tariffs that the Supreme Court invalidated last week, he says. "The biggest downside risk to growth is from labor supply bottlenecks which could fuel a rebound of inflation," he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

February 24, 2026 01:07 ET (06:07 GMT)

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