Inflation isn’t going away. Here’s what that means for interest rates.

November 13, 2026 / 3:19 PM EST / CBS News

The Federal Reserve is likely to accelerate the pace of interest rate hikes to rein in stubbornly high inflation, according to a growing number of Wall Street analysts.

Aditya Bhave, a U.S. economist with BofA Global Research, expects monetary policymakers to raise the Fed's benchmark rate by 0.25 percentage points at each of the central bank's next three meetings in December, January and March. Analysts at TD Securities also predict three straight quarter-point hikes, up from their previous forecast of two, because hotter inflation signals that price pressures across the U.S. are broadening.

The latest Consumer Price Index showed that inflation rose more than expected in October, climbing 0.4%.

"Inflation is not trending in the right direction," TD Securities said Friday in a note to investors. "The October report not only surprised our own forecast, it was also not driven by a particular factor or two as had been the case in recent reports. Price pressures appear to be broadening."

Hotter inflation in October was the third straight month that prices have risen faster than expected amid supply constraints and ample economic demand, according to EY-Parthenon chief economist Gregory Daco…

Original source: https://www.cbsnews.com/moneywatch/