Deutsche Bank Forecasts No Fed Interest Rate Cuts in 2026
Deutsche Bank expects the Fed to keep interest rates steady through 2026. Analysts cite Middle East tensions and a tight labor market as key inflation risks.
DEUTSCHE BANK AG-REGISTERED has revised its outlook for the United States Federal Reserve, now projecting that the central bank will maintain current interest rates throughout 2026. This shift comes as strategists point to persistent inflationary risks driven by volatile oil prices linked to ongoing conflict in the Middle East, alongside a resilient domestic economy and a consistently tight labor market.
The brokerage previously anticipated a 25-basis-point reduction in September. However, analysts now suggest that any easing of monetary policy this year would necessitate a significant cooling of the labor market and a sustained trend of softer inflation data.
