Wells Fargo Projects CPI at 3.4% Through 2026, Above Fed Target

Wells Fargo Investment Institute forecasts U.S. CPI at 3.4% by end-2026 and 2.8% by end-2027 — both above the Fed's 2% target. Stickier inflation means markets may expect too many rate cuts. Savers could see deposit rates stay elevated longer; bondholders holding shorter-duration positions may outperform if inflation resists fading.