Deutsche Bank Forecasts Fed Rate Cut in December

Deutsche Bank predicts that the Federal Reserve will lower interest rates by 25 basis points in December, followed by a pause until the third quarter of 2026. The bank anticipates another rate cut of 25 basis points in September of next year, coinciding with the appointment of new Federal Reserve leadership. Despite conflicting signals from the Fed – some emphasizing persistent inflation concerns while others signal a softening labor market – Deutsche Bank maintains its projected course unchanged.