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Wells Fargo keeps its view that the Fed will hold rates through 2027
The firm also expects the 10-year Treasury yield to be around 4.35% at year-end 2026 and 4.30% at year-end 2027.
Wells Fargo Economics, led by Tom Porcelli and colleagues, expects the Federal Reserve to keep the fed funds rate steady at 3.50% to 3.75% through year-end 2027.
FXStreet reports that, even with a more hawkish tone, the bank sees room for continued patience if inflation keeps cooling and the labor market remains balanced.
Wells Fargo also left unchanged its call for the 10-year Treasury yield, projecting it near 4.35% at year-end 2026 and about 4.30% at year-end 2027, according to FXStreet’s summary of the outlook.