Danske Bank expects at least two rate hikes from the Federal Reserve

Odaily Odaily reports that Danske Bank 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 respectively, bringing the federal funds rate to 4.00%-4.25%. They noted, however, that there is a risk of rate hikes coming sooner, and that the number of hikes could exceed two. Danske Bank analysts also indicated that Kevin Warsh’s first meeting as Fed Chair sent a clear signal that the Federal Reserve is increasingly moving away from forward guidance on future monetary policy decisions, allowing for greater discretion in future policy moves.