Deutsche Bank's weekly US economic note outlines a shift to a more hawkish Fed regime under Chair Kevin Warsh. The firm now forecasts two 25bps rate hikes in 2026, citing persistent inflation concerns.
Key Takeaways
- 1.Fed Chair Kevin Warsh has implemented a 'regime change' in communications and established five new task forces to address policy framework and data reliance.
- 2.Deutsche Bank updated its Fed view to forecast 50bps of rate hikes in 2026, targeting a 4.1% fed funds rate following September and December increases.
Table of Contents
- US Economic Notes
- Appendix 1
- Additional Information
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Authors
Brett RyanMatthew Luzzetti, Ph.D.Justin WeidnerAmy Yang
Securities
Fed funds rate
Themes
Monetary Policy NormalizationInflation Persistence
Regions
North AmericaUnited States