Danske Bank: The Federal Reserve is expected to raise interest rates twice in 2026 and 2027

According to Jinshi reports, Danske Bank senior analyst Kirstine Kundby-Nielsen and chief analyst Jens Peter Sorensen stated in a report that the Federal Reserve is expected to raise interest rates twice in December 2026 and March 2027, bringing the federal funds rate to 4% - 4.25%. They emphasized that the rate hikes could come earlier and that the number of hikes may exceed two. Analysts pointed out that the Federal Reserve is increasingly abandoning the use of forward guidance, preferring to have greater discretion in future policy decisions.