Dansk Bank: The Fed is expected to increase interest rates twice

According to Kirstine Kundby-Nielsen, Senior Analyst at Dansk Bank, and Jens Peter Sorensen, Chief Analyst, the Fed is expected to increase interest rates in December 2026 and March 2027, respectively, in response to potential inflationary pressures. At that time, the key policy rate will rise to 4.00 per cent-4.25 per cent. In their report, they stated: “We still believe that the interest rate hike may have been earlier, but the most recent disappointing data make the risk situation more balanced”. The currency market currently expects the Fed to raise interest rates by 23 basis points in December and by 33 basis points in aggregate by March 2027。