Deutsche Bank: Expects the Fed to raise rates three times in a row

Deutsche Bank updated its rate forecasts following the October CPI data, which came in higher than expected—marking the first time it has included a potential 25-basis-point hike in January next year. According to its latest outlook, the Fed may raise rates by 25 bps in December, January, and March, pushing the federal funds rate target range to 4.50%–4.75%. Although recent hawkish signals from Fed Governor Christopher Waller have made a 50-bps hike in December a plausible scenario, Deutsche Bank continues to exclude it from its baseline forecast. Meanwhile, the bank raised its neutral rate estimate to 3.75%–4.00%, suggesting it expects elevated interest rates to persist for longer.