The bank keeps its projection for two Federal Reserve rate reductions next year despite stronger-than-expected inflation data.
Wells Fargo is standing by its forecast for two Federal Reserve interest rate cuts in 2026, even as recent inflation reports exceeded expectations. The decision follows data that raised concerns about persistent price pressures in the economy.
Earlier projections aligned with market expectations of gradual easing, though recent inflation prints have prompted some analysts to delay or reduce their rate cut estimates. Wells Fargo’s outlook contrasts with growing skepticism about the Fed’s ability to ease policy amid sticky inflation.
Markets have reacted cautiously to mixed signals, with Treasury yields fluctuating as investors weigh the likelihood of prolonged higher rates against potential cuts later in the year.