On April 18, Deutsche Bank economists bet on a more hawkish Fed rate hike, but they still expect the Fed to raise rates only once, followed by a long pause. Inflation remains too far from target, they say, while the threat to the banking sector is losing steam.
“In our view, with the acute phase of banking stress appearing to have receded and yet another strong inflation report on the horizon, we expect the Fed to eventually hike rates by 25 basis points and hold rates steady at 5.1% by year-end, Then start cutting rates in January 2024.”