Deutsche Bank Raises U.S. Inflation Forecast, Sees 50 Basis Points of Fed Hikes in 2026

According to an Odaily newsflash, Deutsche Bank has raised its U.S. inflation forecast and made a broad revision to its view on Federal Reserve policy. The bank now expects the Fed to raise rates by a total of 50 basis points in 2026, taking the policy rate to 4.1%. The report also said that a rate hike could be brought forward to July.

A basis point is a standard unit used in interest-rate changes; 50 basis points equals 0.50 percentage points. The key update is that Deutsche Bank adjusted both its U.S. inflation expectations and its Fed rate outlook upward. The Odaily item did not provide additional figures for inflation, meeting details, or voting information.