From the Desk - Economic Commentary
Scott Goedken, Institutional Strategies Director - 10/16/2026
Treasury yields are modestly higher this morning, although long-term yields remain below the highs reached earlier this week. Equity markets are mixed, with the Dow Jones Industrial Average outperforming the broader market. WTI crude oil is trading lower following yesterday's rally but remains near its highest level of the week.
Industrial production increased 0.7% in September after rising 0.1% in August. The gain was the largest monthly increase since earlier this year and pushed industrial production 2.2% above year ago levels. Capacity utilization increased to 76.9% from 76.4% in August, indicating continued strength in industrial activity despite a higher interest-rate environment.
Import prices increased 1.1% in September following a revised 0.5% increase in August, while export prices rose 2.2% after a revised 1.2% gain. Import prices were up 8.1% from a year ago, the largest annual increase since 2022, as higher fuel and commodity prices continued to push costs higher. These data add to the inflation pressures highlighted by this week's CPI and PPI reports.
Comments from Federal Reserve Chairman Kevin Warsh this morning were viewed by markets as supportive of a pause at the October FOMC meeting. Investors remain focused on whether this week's inflation data will support additional policy tightening later this year
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