Economists: Sticky inflation could keep the Federal Reserve maintaining interest rates at a higher level in 2027.

On October 14, Chris Rupke, Chief Economist at FWDBonds, stated that mounting evidence indicates the energy price shock triggered by the war in the Middle East is beginning to push up prices for other core goods and services. It is evident that as long as geopolitical risks continue to drive up energy costs, many businesses will face cost pressures, forcing them to pass inflationary pressures onto other consumers and companies. Inflation remains sticky, implying that Federal Reserve officials may need to raise interest rates further and maintain higher interest rate levels through 2027. (Jin10)