Fed’s Bostic Signals Fewer Rate Cuts Amid Stubborn Inflation Concerns; Verizon Unveils $25 Billion Share Buyback

By / / Breaking News

Key Takeaways

  • Federal Reserve Bank of Atlanta President Raphael Bostic indicated that two interest rate cuts are not his baseline case for the year, expecting inflation to remain stubborn.
  • Verizon Communications Inc. (VZ) has authorized a substantial $25 billion share buyback program, with plans to repurchase at least $3 billion in stock during 2026.
  • The fourth-quarter earnings season is entering its third busiest week, with over 1,500 companies scheduled to report, including tech giants Alphabet (GOOGL), Amazon (AMZN), and AMD (AMD).
  • Bostic emphasized that inflation is "too high" and needs to come down, anticipating some tariff impact through the first half of 2026.

Federal Reserve Bank of Atlanta President Raphael Bostic delivered a hawkish outlook on inflation and monetary policy, stating that two interest rate cuts are not his baseline expectation for the year. Bostic anticipates inflation will be "stubborn" and "mark time" for most of 2026, urging the Fed to remain patient and vigilant on rates. He stressed that the risk of inflation staying too high remains a concern and that the Fed still has "ways to go on inflation". Bostic also noted that he expects some tariff impact to filter through the economy during the first half of 2026, potentially affecting price levels.

Regarding the Fed's balance sheet, Bostic stated that its current size is "about right" and should grow with the economy, while suggesting it would be best to hold only Treasury securities that match the market. He also extended congratulations to Kevin Warsh on his nomination, describing him as "thoughtful". Bostic's concerns about persistent inflation put him somewhat at odds with some of his Federal Reserve colleagues.

In corporate news, Verizon Communications Inc. (VZ) announced a significant capital allocation strategy, authorizing a new share repurchase program of up to $25 billion. The telecommunications giant plans to buy back at least $3 billion of its stock in 2026 alone. This move is part of Verizon's broader capacity to return $55 billion of value to shareholders through dividend payments and share repurchases through the end of 2028. The company also announced a 2.5% dividend increase.

Meanwhile, the fourth-quarter earnings season is in full swing, entering its third busiest week with over 1,500 companies slated to report their results. Investors are closely watching reports from major technology companies, including Alphabet (GOOGL), Amazon (AMZN), and AMD (AMD). Other notable companies reporting include Boeing (BA), General Motors (GM), UnitedHealth Group (UNH), AT&T (T), Automatic Data Processing (ADP), Starbucks (SBUX), IBM (IBM), ASML (ASML), Nokia (NOK), and SAP (SAP). FactSet forecasts that earnings for the S&P 500 index grew by 8.2% in Q4 2025, marking the tenth consecutive quarter of expansion.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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