Deutsche Bank Predicts Three Consecutive Fed Rate Hikes

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On November 11, 2026, Deutsche Bank revised its forecast to include a January 2027 rate hike following stronger-than-expected October CPI data. The bank now anticipates three consecutive Fed rate hikes—in December 2026, January, and March 2027—raising the target range to 4.50%-4.75%. A 50-basis-point increase in December is possible, citing hawkish comments from Fed Governor Waller. The bank also raised its neutral rate forecast to 3.75%-4.00%. Risk-on assets may come under pressure due to tighter monetary policy, while regulatory scrutiny of CFT measures intensifies.

BlockBeats news: On November 11, following the higher-than-expected October CPI data, Deutsche Bank has incorporated a January rate hike into its forecast. The bank now expects the Federal Reserve to raise rates by 25 basis points in December, January, and March, bringing the target range for the federal funds rate to 4.50% to 4.75%.


Analysts noted that a 50-basis-point rate hike in December remains a possibility given recent hawkish comments from Fed Governor Waller, though this is still not part of the bank’s baseline forecast. Additionally, Deutsche Bank raised its neutral rate forecast to 3.75%–4.00%, indicating it expects interest rates to remain elevated for an extended period.

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