Wells Fargo no longer expects Fed rate cuts in 2026 as Iran war drags on
Why it matters: Wells Fargo's revised forecast means consumers and businesses face higher borrowing costs for at least another two years.
- Wells Fargo Investment Institute no longer expects the U.S. Federal Reserve to cut interest rates in 2026, citing inflation and geopolitical risks.
- MarketWatch reports the economy is jolted by the Iran war, with inflation bubbling up and service companies curbing employment.
- United Airlines anticipates even higher ticket prices, with or without the Iran war.
- Oil climbs anew on mixed signals about the Iran war's future, according to Axios.
- China started preparing for an energy crisis long before the Iran War, as reported by NYT Business.
- OPEC Plus warns of a slow recovery after the war in Iran, per NYT Business.
Wells Fargo Investment Institute has reversed its 2026 forecast, now anticipating no Federal Reserve interest rate cuts due to persistent inflation and escalating geopolitical risks from the Middle East war, a sentiment echoed by MarketWatch which notes the economy is being jolted by the conflict, leading to bubbling inflation and employment curbs in service companies. While oil prices climb amid mixed signals about the war's future, United Airlines expects higher ticket prices regardless, and China had already begun preparing for an energy crisis, with OPEC Plus warning of a slow recovery.
