Wells Fargo Sees CPI at 3.4% Through 2026, Well Above Fed's 2% Target

Wells Fargo Investment Institute's 2026 Midyear Outlook projects U.S. CPI at 3.4% by year-end 2026 and 2.8% by year-end 2027 — both above the Fed's 2% goal. A stickier inflation path implies markets may be pricing too many rate cuts. For savers, that could mean deposit rates stay elevated longer; for bondholders, shorter-duration positions could outperform if inflation resists fading.