[Analysis: Inflation May Far Exceed Expectations This Year, Fed Rate Cut Outlook Changes] BlockBeats News, January 16—At the beginning of 2026, market concerns about a renewed acceleration in inflation have significantly intensified. Several fund managers have warned that surging metal prices, rising energy and infrastructure costs driven by AI, and the uncertainty surrounding Trump's replacement of the Federal Reserve Chair in May could push this year's inflation levels far beyond previous expectations. Currently, inflation remains above the Federal Reserve's 2% target. If price pressures further escalate, the market's earlier expectation of two rate cuts (each by 25 basis points) in 2026 may be difficult to realize, with even the risk of no rate cuts throughout the year. Although the U.S. stock and bond markets have yet to fully price in this risk, some institutions have already begun adopting defensive strategies. Several investors have pointed out that if the 10-year U.S. Treasury yield surpasses 4.3%, it could serve as a critical warning signal of inflationary and financial market pressures.