Wall Street Unanimity on Higher Rates for Longer

KKR, a leading US private equity firm, has revised its forecast for long-term U.S. Treasury yields, expecting them to close the year at 5.1%, higher than previously envisioned.

The company also expects the Federal Reserve to keep its benchmark rate at a higher level, citing Federal Reserve Chair Warsh's concerns about persistently high inflation.

KKR now predicts rates will remain elevated until early 2029, compared to its previous forecast of remaining unchanged until 2028.

The majority of major Wall Street investment banks have also raised their expectations for further tightening, with many anticipating another rate hike in December and March next year.