Danske Bank: Fed Could Hike Rates at Least Twice

BlockBeats News, June 25th - Danske Bank's Senior Analyst, Kirstine Kundby-Nielsen, and Chief Analyst, Jens Peter Sorensen, stated in a report that they expect the Federal Reserve to raise interest rates twice in December 2026 and March 2027, bringing the federal funds rate to 4.00%-4.25%. "However, we emphasize that there is also a risk of rate hikes coming sooner and the number of hikes exceeding two," they said.

Kevin Wash, in his first meeting as Federal Reserve Chair, sent a clear signal that the Fed is increasingly moving away from using forward guidance around future monetary policy decisions. "All signs indicate that the Fed is inclined to have greater discretion in future policy decisions," said Danske Bank's analysts. (FXStreet)