Fed: Higher yields keep tightening path intact – Nordea
Nordea’s research team keeps its Federal Reserve outlook unchanged, expecting one more rate hike this year and another in 2027 as US inflation remains above the 2% target and growth stays strong.
Nordea maintains its Federal Reserve outlook, anticipating one additional rate hike this year and another in 2027. The bank attributes the high long-term Treasury yields to robust nominal GDP growth and significant capital demand, rather than restrictive monetary policy. Despite inflation remaining above the 2% target, Nordea believes higher yields do not hinder economic expansion. The bank retains its forecast for two more rate hikes this year and next.
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