Wells Fargo & CompanyWFC
▼ NegativeMonetaryrelevance
Wells Fargo's own forecast of a Fed rate hike and higher inflation may pressure its net interest margins and economic outlook.
Impact on stocks 1
Financials
Wells Fargo & CompanyWells Fargo has lifted its inflation forecasts for 2026 and 2027 and now expects the Federal Reserve to raise rates by a quarter point before the year is out. The bank's investment institute previously expected the Fed to remain on hold this year and in 2027, according to Reuters. Costlier energy, new tariffs, and supply chains that still do not run smoothly are behind the change. The bank's own June targets had inflation ending this year at 3.4%, easing again in 2027, while expecting the Fed funds rate to remain at 3.50% to 3.75%. Wells Fargo economists now see the path going flat after cheaper energy brings most of the relief next year, with everyday services staying in demand and huge spending on artificial intelligence pushing up what companies pay for workers, materials, and building work.
Wells Fargo & CompanyWells Fargo's own forecast of a Fed rate hike and higher inflation may pressure its net interest margins and economic outlook.