Deutsche Bank: Expects the Fed to raise rates three times in a row

BlockBeats news, November 11 - Following October's higher-than-expected CPI data, Deutsche Bank has incorporated a January rate hike into its forecast. Currently, the bank expects the Federal Reserve to raise rates by 25 basis points in December, January next year, and March, respectively, which would bring the target range for the federal funds rate up to 4.50% to 4.75%.

Analysts noted that given recent hawkish remarks from Fed Governor Waller, a 50 basis point hike in December is also possible, but this remains outside the bank's base case scenario. Additionally, Deutsche Bank has raised its neutral rate forecast to 3.75% to 4.00%, indicating its view that rates will remain elevated for a longer period.