Deutsche Bank Forecasts Three Straight Fed Rate Hikes Into March 2027

Deutsche Bank expects the Federal Reserve to raise rates at its next three meetings, extending monetary tightening into March 2027 and giving crypto and other risk-asset markets a tighter policy path to weigh.

The bank's baseline calls for 25-basis-point increases in December 2026, January 2027 and March 2027. The federal funds target range would reach 4.50% to 4.75% after the March move.

Deutsche Bank added the January increase after October consumer price data came in above expectations. It also raised its estimate of the neutral rate to 3.75% to 4.00%, a revision the bank views as pointing to rates staying elevated for longer.

A 50-basis-point increase in December is possible in light of recent hawkish remarks by Fed Gov. Waller, but it is not part of Deutsche Bank's baseline forecast. The first increase in the bank's sequence is projected for December.