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A Shifting Inflation Picture

A Shifting Inflation Picture

Recorded October 6, 2026

In the latest Commerce Trust Market Brief video, Scott Colbert, Chief Economist and Director of Fixed Income Management, discusses economic and market trends that point to modest improvement in inflation and moderating expectations for a potential Federal Reserve move in the short term. 

  • Artificial intelligence (AI) and technology-driven stocks continue to drive stock market performance while overall stock valuations have moderated

  • Negative returns in the bond market persist due to higher interest rates

  • The August employment report showed limited job growth, while the unemployment rate edged slightly higher

  • And while stronger nominal growth has supported economic resilience and inflation has shown modest improvement, higher energy prices and the lingering effects of the elevated interest rate environment could weigh on economic activity


 

Read the transcript

 


 

 

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