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Economist Peter Linneman pushes back on Fed rate-cut pace amid oil
Linneman said the Iran-related hit to oil prices changed his earlier 2026 outlook, even as he still expects inflation to ease over time.
ConnectCRE reports that economist Peter Linneman still expects inflation to ease, but he has revised his confidence about how quickly the Federal Reserve will cut the federal funds rate.
On a Walker Webcast on Oct. 7 hosted by Walker & Dunlop CEO Willy Walker, Linneman acknowledged that the conflict in Iran and its impact on oil prices upended his prior prediction of two to three rate cuts in 2026.
ConnectCRE also reports that Linneman does not see rates coming down any time soon, nor does he expect them to move higher, while oil prices are expected to stabilize at some point even if at a higher level.
The outlet adds that once oil becomes non-inflationary, measured inflation should fall.