Fed Hawks Trigger Stagflation-Era Policy Shift Through 2027

The Federal Reserve's March 2026 meeting revealed a dramatic hawkish pivot, with the dot plot showing no rate cuts until March 2027 despite maintaining current rates at 3.5%-3.75%. This marks a fundamental shift from earlier dovish expectations as the Fed grapples with persistent inflation above 3.4%, Middle East energy shocks pushing oil to $116, and complex AI productivity dynamics creating stagflation risks.