Wells Fargo Investment Institute expects more forceful Fed response; 10-year near 5.25%
WFII says persistent near-term inflation may require a more forceful Fed response, forecasting a full point hike from current levels by spring 2027. It expects the 10-year Treasury yield at 5.25%-5.75% and 30-year at 5.50%-6.00% by end-2027; 10-year hovering around ~5.25% on a six-day daily increase run.
25% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Wfii Sees Persistent Inflation Requiring More Forceful Fed Response Wells Fargo Investment Institute expects persistent geopolitical risks and robust corporate technology spending to keep inflationary pressures elevated, leading the Federal Reserve to tighten monetary policy further.
The institute said persistent near-term inflation is likely to require a more forceful policy response to bring price pressures under control and now expects the Fed to raise its target federal funds rate range by a full percentage point from current levels, with hikes likely between this year and in spring 2027. 00% by the end of 2027. Higher Fed rates, sticky inflation, geopolitical uncertainty, heavy Treasury issuance and fiscal deficit concerns are expected to keep pressure on long-term yields and term premiums, the institute said. S.
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