The US financial markets are currently experiencing a significant shift in narrative: from expectations of a Fed rate cut in September 2026 to the possibility of a 25-basis-point rate hike, with the probability reaching 70% (based on CME data as of September 2, 2026). This shift has been driven by inflation remaining above target (PCE 3.7% yoy, Core PCE 3.3%), surging energy prices due to geopolitical conflicts, and hawkish statements from Fed officials, including Chair Kevin Warsh.
Wells Fargo has revised its monetary policy forecast and now expects rate hikes in 2026 and 2027, bringing the f
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