Policy is well positioned for what lies aheadSees tariffs as a one-off price adjustment, not spilling into broader inflationSees inflation at 2.5% in 2026 and 2% in 2027Projects jobless rate will come down over the next few yearsExpecst 2026 GDP to hit 2.25%, well above 2025 rateLabor market risks have risen as risks to inflation have easedFed policy has moved towards neutral from modestly restrictiveThere isn't any kind of strong signal here but note that the market is seeing a nearly 25% chance of a January rate cut, with two cuts full priced in next year and a 33% chance of a third. This article was written by Adam Button at investinglive.com.