Homrich & Berg: Persistent inflation keeps Fed rate hikes on track
TLT•Homrich & Berg said persistent inflation remained a problem for the Fed in its October 19 market review. Core CPI reached 2.6% and core PPI hit 5%, while markets anticipated one rate hike in 2026 and two more in 2027.
1. Inflation and rate outlook
Homrich & Berg’s October 19 market review, covering the week ended October 16, said core CPI reached 2.6%, above the 2.5% forecast, while core PPI hit 5%. Market expectations remained largely unchanged, with one rate hike anticipated in 2026 and two more in 2027.
2. Other indicators
The Fed’s Beige Book highlighted fuel-driven margin compression, while jobless and continuing claims indicated stable employment conditions.
