BofA, Deutsche Bank Expect Fed To Raise Rates In September

Bank of America and Deutsche Bank now expect the Federal Reserve to begin raising interest rates in September, citing a resilient labor market, persistent inflation pressures, and a more hawkish policy stance under new Fed Chair Kevin Warsh. BofA forecasts three quarter-point rate hikes in September, October, and December, a total of 75 basis points in 2026, while Deutsche Bank also anticipates rate increases before rates stabilize in 2027.