Deutsche Bank now projects three Federal Reserve rate increases through March 2027, a path that would lift the federal funds target range to 4.50% to 4.75% and extend tightening into next year.
The bank’s sequence starts with a quarter-point increase at the December 2026 meeting, followed by projected moves in January and March 2027. Deutsche Bank added the January step after October consumer price data exceeded expectations.
After the March increase, the forecast would put the target range at 4.50% to 4.75%. Deutsche Bank lifted its neutral-rate estimate to 3.75% to 4.00% and said the change supports keeping policy restrictive for longer.
Deutsche Bank considers a 50-basis-point increase in December possible, but its baseline includes a quarter-point move. December is the first projected step in the bank’s three-meeting sequence.
