Gordon Johnson of Wall Road analyst agency GJL Analysis had little to say to consolation supporters and even much less to reward the Federal Reserve after February import value knowledge was launched on March twenty fifth.
Particularly, the figures confirmed that import costs rose by 1.3% and export costs rose by 1.5% within the second month of 2026, whereas the anticipated fee of change for each was 0.6%. Prime Minister Boris Johnson took specific observe of the truth that the rise lined the interval earlier than the beginning of the Iran struggle, and hinted at considerations about what the March numbers would appear like given oil costs.
Moreover, GJL Analysis specialists estimated that February’s knowledge suggests an annualized inflation fee of between 16.8% and 19.6%. For comparability, the post-pandemic wave of inflation by no means rose a lot above 8%, a document set in 2022.
Moreover, the best annual inflation fee the U.S. has confronted since 1960 was 13.5% in 1980, based on 64 years of knowledge Finvold obtained from the Federal Reserve Financial institution of St. Louis (FRED) on March 26, 2026.
Wall Road specialists urge Fed to boost rates of interest ‘now’
Elsewhere, Governor Gordon Johnson mentioned the one treatment for the scenario was a “lots of of foundation factors in fee hikes” and emphasised the urgency by saying such steps wanted to be taken instantly, suggesting the Fed mustn’t watch for its subsequent scheduled assembly.
Maybe much more alarming, Wall Road analysts have concluded that America’s central banks are “not out of date,” however relatively “not even within the subject.” He additionally referred to each the confirmed February numbers and the anticipated March numbers, saying they have been “a catastrophe.”
🚨Breaking information: February import costs are +1.3% (anticipated +0.6%). Export value +1.5% (anticipated +0.6%). Annualized: 16.8% to 19.6% inflation. That was earlier than oil was 50% depleted. The Fed shouldn’t be behind the curve; it is not even on the scene. Now we want a fee hike of a number of hundred foundation factors. This ends badly. pic.twitter.com/oHiKs73hg5
— Gordon Johnson (@GordonJohnson19) March 25, 2026
Remarkably, Gordon Johnson’s view of the state of the US financial system nearly precisely mirrors the response of prime economist Peter Schiff.
Certainly, Schiff equally opined in an X-Put up printed across the identical time that the numbers have been extraordinarily alarming, warning that with out rapid rate of interest hikes of lots of of foundation factors, the U.S. was “heading towards a full-blown monetary disaster.”
Is there a risk of additional fee hikes in 2026?
Apparently, the response of Wall Road analysts and economists is actually a distorted mirror picture of President Donald Trump’s beforehand expressed aspirations.
Particularly, because the begin of 2026, he has repeatedly urged the Fed to handle rates of interest instantly, with out ready for a scheduled Federal Open Market Committee (FOMC) assembly, and his goal has all the time been to decrease rates of interest.
Nonetheless, whatever the political aspirations of assorted key gamers, buyers look like pricing in additional fee hikes as a result of affect the continued Iran struggle is having on the worldwide financial system.
Featured picture by way of Shutterstock
