Wells Fargo Investment Institute has revised its forecast for U.S. Federal Reserve policy, now anticipating a 25 basis point interest rate hike within the year. This marks a departure from the institute’s previous expectation that rates would remain unchanged. The revision comes amid ongoing inflationary pressures, with U.S. core inflation figures exceeding the Federal Reserve’s 2% target. The Fed’s current target range stands between 3.50% and 3.75%, with the effective rate at 3.63% as of mid-August 2026. Market participants are closely monitoring these developments, as they suggest a potential tightening of monetary policy in the near term.
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