Deutsche Bank adopted a more hawkish monetary policy outlook on June 20, 2026. The bank now forecasts two Federal Reserve rate hikes for the year. These adjustments total 50 basis points. The revision brings the projected federal funds rate to 4.1%.
Recent hawkish signals from the June FOMC meeting influenced the updated forecast. Easing geopolitical tensions also contributed to the shift. Lower oil prices and reduced inflation expectations allowed the bank to recalibrate its economic models.