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Macro

Danske Bank: Fed May Hike Twice by 2027

Danske Bank analysts predict the Federal Reserve will raise interest rates in December 2026 and March 2027 to counter inflation, lifting the key policy rate to 4.00%-4.25%. They note that while hikes could come earlier, recent disappointing data has balanced the risks. Money markets currently price in a 23bp hike in December and 33bp cumulative by March 2027.

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