Deutsche Bank Projects Three Consecutive Fed Rate Hikes After Strong October Inflation Data

Deutsche Bank revised its Federal Reserve outlook to forecast three consecutive 25-basis-point rate increases in December, January, and March, raising the federal funds target range to 4.50%-4.75%. The revision follows October Consumer Price Index data showing a 0.4% monthly rise, topping consensus projections of 0.3% due to persistent accommodation and food costs. The target range currently stands at 3.75%-4.00%, with markets indicating a nearly 99% probability of a December move. Fed Governor Christopher Waller supported at least a quarter-point December hike, raising the possibility of a 50-basis-point move if inflation accelerates.