The New York Fed's Survey of Consumer Expectations for October 2026 shows median one-year inflation expectations climbing to 3.9%, the highest reading since May 2023 and a notable acceleration from recent months. The data point adds to a picture of inflation re-entrenchment that complicates the Fed's ability to cut rates and may force a hawkish hold or even a resumption of tightening rhetoric at the next FOMC meeting.
For Armada's traditional repo desk, higher-for-longer SOFR has dual implications. It sustains attractive absolute repo rates for cash lenders but compresses borrower appetite for term repo and increases rollover risk for counterparties carrying leveraged Treasury positions. Asset managers and hedge funds under duration stress may reduce collateral quality or shorten tenor preferences, which Armada should factor into current haircut and tenor policy.