Deutsche Bank: It is expected that the Federal Reserve will raise interest rates three times in a row

After the October CPI data exceeded expectations, Deutsche Bank included a rate hike in its forecast for January next year. Currently, the bank 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 stated that considering the recent hawkish remarks by Federal Reserve Governor Waller, a 50 basis point hike in December is also a possibility, but this is still not part of the bank's baseline forecast scenario. In addition, Deutsche Bank raised its neutral rate expectations to 3.75% to 4.00%, indicating that it believes rates will remain elevated for a longer period.