Deutsche Bank expects the Federal Reserve to raise interest rates by 25 basis points each in December and March next year, not ruling out a rate hike in October.
Following the surge in U.S. Treasury yields, the market is closely watching statements from Federal Reserve officials. Deutsche Bank stated that policymakers generally hold a hawkish stance and expects the Federal Reserve to raise interest rates by another 25 basis points in December this year and March next year, respectively. The bank also noted that a tightening labor market, persistent underlying inflation, or strong AI-driven investment demand could even bring a rate hike in October back onto the agenda.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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