Banks forecast US rate increases in 2026

Global banks such as Bank of America and Deutsche Bank expect the U.S. Federal Reserve to start raising interest rates by the end of 2026, with projections of a 75 basis point increase over the course of the year, driven by ongoing inflation pressures and a shift in the central bank's policy under its new leader. Meanwhile, most banks anticipate interest rates remaining stable throughout 2026, with the possibility of cuts beginning in 2028.

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