Deutsche Bank Expects Three Consecutive Fed Hikes, Fed Funds Target Range Rising to 4.50%–4.75%

November 11: According to Reuters, US October CPI rose 0.4% month-on-month, above the 0.3% expected. After the data was released, Deutsche Bank added a January rate hike to its forecast in a research note: it now expects the Fed to raise rates by 25 basis points each in December this year, January next year and March, taking the federal funds target range from the current 3.75%–4% to 4.50%–4.75%. Deutsche Bank also said remarks by Fed Governor Waller make a 50-basis-point hike in December possible, but this is not its base case. CME FedWatch shows the market sees a near-99% probability of a December rate hike.