Wells Fargo and Citigroup Delay Fed Rate Cut Forecasts

The Wells Fargo Investment Institute, a subsidiary of WELLS FARGO & CO, has updated its financial projections to indicate that it no longer expects the Federal Reserve to lower interest rates in 2026. This shift in sentiment comes as the United States grapples with persistent inflation and the geopolitical fallout from the prolonged conflict involving Iran.

The institute had previously forecast two rate cuts for the current year. However, strategists now suggest that the central bank is likely to remain on hold as it monitors economic data and global instability.