Fed Expected to Hike Rates Again as Inflation Data Supports Tightening
Deutsche Bank's economists are predicting a 25bp rate hike to 3.75%-4.00% by the Federal Reserve this Wednesday, with a total of 75bps of hikes expected over the next seven months.
This forecast comes after recent US inflation data showed core CPI rising by 0.29% in August, above expectations and up from 0.22% in July.
Additionally, last Thursday's PPI report contained hawkish elements, including stronger hospital and international airfare prices, further supporting the case for a rate hike this week.