Danske Bank: Fed may raise interest rates twice

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

They noted in the report: "We still believe the rate hike could come earlier, but the latest disappointing data has made the risk situation more balanced." Money markets currently expect the Fed to hike by 23 basis points in December and a cumulative 33 basis points by March 2027. (Jin Shi)