Vanguard CIO Predicts Federal Reserve Interest Rate Hikes
Vanguard Chief Investment Officer Greg Davis predicts the Federal Reserve will raise interest rates one to two times over the next two months to combat inflation.
Greg Davis, Chief Investment Officer of Vanguard, predicts the Federal Reserve will likely raise interest rates one to two times over the next two months. Speaking on October 14, 2026, Davis stated that recent elevated Consumer Price Index data indicates the central bank must take continued action to reach its inflation targets.
Davis characterized fixed income as an attractive asset class due to normalized rates and real yields. He recommended a bias toward the intermediate part of the yield curve to mitigate risks from long-term inflation and corporate issuance from hyperscalers.
Beyond macroeconomic outlooks, Davis detailed Vanguard's expansion into private markets. The firm has partnered with Blackstone and Wellington Management to provide individual investors with access to high-growth private companies. Davis maintained that these strategic shifts align with the firm's core mission of lowering investment costs for clients.
