Analyst report 🌐 Macro 📊 Neutral 🌍 United States

Nordea Maintains Hawkish Fed Outlook With Two More Rate Hikes Expected

Nordea analysts maintain a hawkish stance on the Federal Reserve, forecasting two further rate hikes through 2027 as US inflation remains sticky and economic growth exceeds expectations.

🕐 1 min read
Impact
10/10

💡 Key Takeaways

  • Nordea expects one additional rate hike before the end of the current year.
  • A second rate hike is projected for 2027 to combat persistent inflationary pressures.
  • Strong US economic growth and inflation above the 2% target underpin the firm's outlook.

📋 Executive Summary

Nordea’s research team holds its Federal Reserve policy forecast steady, projecting one additional rate hike this year and another in 2027. The firm cites persistent US inflation above the 2% target and resilient economic growth as the primary drivers for the continued tightening cycle.

📊 Sentiment Analysis

Sentiment
📊 Neutral
Impact Score
10/10
Region
🌍 United States
Asset Class
🌐 Macro

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📰 Source

📅 Originally published:
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