Deutsche Bank projects two quarter-point Fed rate increases this year amid persistent inflation and strong economic data.
Deutsche Bank anticipates the Federal Reserve will raise interest rates by a total of 50 basis points in 2024. The forecast reflects ongoing inflation above the Fed’s target and a resilient U.S. labor market and economic growth.
The bank expects two 25-basis-point hikes, though no specific timing was provided. Recent economic indicators have shown strength, complicating the Fed’s path toward its 2% inflation goal.
Markets have priced in a higher probability of rate cuts this year, but the bank’s outlook suggests a more hawkish stance may persist.