U.S. Inflation Expected to Peak at 4% -- Market Talk

0503 GMT - U.S. inflation could peak at 4% early in the new year, RBC BlueBay Asset Management's Mark Dowding says in a note. In light of this, RBC BlueBay expects the Federal Reserve to raise interest rates in the current quarter as well as in the first quarter of 2027, the fixed income CIO says. "Thereafter, we expect base effects to kick in, and a declining trajectory in CPI which will keep the Fed on hold thereafter," he says. RBC BlueBay continues to feel that markets have priced too many Fed hikes for the year ahead and remains constructive at the front of the yield curve. U.S. headline year-over-year inflation was 3.7% in September. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

October 19, 2026 01:03 ET (05:03 GMT)