Markets and Economic Updates for February 2026: Inflation and the Fed in Focus

On February 3rd, senior leaders from Hancock Whitney Asset Management hosted their February 2026 Markets and Economic Update Webcast, offering insight into recent market developments and the forces shaping the start of the year.

The discussion centered on February market conditions, with a particular focus on monetary policy expectations, inflation dynamics, and economic momentum. While markets began the year amid heightened sensitivity to policy signals, underlying economic data continued to point to steady growth, resilient consumer activity, and a market environment increasingly shaped by policy decisions.

A central focus of the discussion was the nomination of Kevin Warsh as the next Federal Reserve Chair. His reputation as an inflation hawk and critic of excessive monetary intervention triggered immediate reactions across asset classes and reinforced the message that inflation risks remain front and center for policymakers and investors alike.

During the webcast, the team highlighted several themes expected to influence markets in 2026—including monetary policy direction, economic momentum, and emerging risks to growth.

Watch the February 2026 Markets and Economic Webinar

Webcast Highlights: Key Takeaways for 2026

• Markets were surprised by the nomination of Kevin Warsh, and that surprise was clearly reflected across equities, bonds, currencies, and commodities.
• The U.S. economy has continued to show resilience, even in the face of restrictive monetary policy.
• Inflation progress is real, but it is not complete—and producer price pressures are an important risk to monitor.
• Bond markets are increasingly focused on when the Fed can begin easing, not whether easing will occur.
• A broader set of sectors and companies is starting to participate, which would be a healthier backdrop for equity markets.
• The biggest risk to the outlook is an accelerationin inflation that would limit the Fed’s flexibility.
• Maintaining Fed independence will remain a criticalissue for markets during the confirmation process.
• A partial government shutdown started over the weekend as Congress failed to pass half the necessary appropriations measures ahead of the January 30 deadline. The shutdown is likely to be short-lived, but resolution will require some careful strategizing by Republican leadership.

We encourage you to listen to the full recording for deeper insight into how these dynamics may influence markets and portfolios as 2026 unfolds.

Disciplined investing is more important now than ever.

Our Asset Management team at Hancock Whitney is ready to help you align your portfolio to weather uncertainty and pursue long-term goals. Contact your Private Banker today.

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