Danske Bank: Fed Expected to Implement Two Rate Hikes

Odaily Planet Daily News: Danske Bank senior analyst Kirstine Kundby-Nielsen and chief analyst Jens Peter Sorensen stated that the Federal Reserve is expected to hike interest rates once in December 2026 and once in March 2027, respectively, to address potential inflationary pressures. At that point, the key policy rate would rise to 4.00%-4.25%.

In their report, they noted: "We still believe a rate hike could come earlier, but the latest disappointing data has made the risk profile more balanced." Money markets currently price in a 23-basis-point rate hike by the Fed in December and a cumulative 33 basis points of hikes by March 2027. (Jin Shi)