Federal Reserve Officials Split Over 2026 Interest Rate Hikes
Federal Reserve policymakers are divided between 50 and 75 basis points of additional interest rate tightening through 2026, according to a Deutsche Bank analysis.
Officials at the Federal Reserve System are divided over the scale of interest rate hikes planned through 2026 and 2027. An analysis of the September Summary of Economic Projections by Deutsche Bank reveals a split between policymakers favoring 75 basis points of additional tightening and those backing 50 basis points.
Regional Fed presidents Beth Hammack, Lorie Logan, Neel Kashkari, and Jeff Schmid lean toward the more aggressive 75 basis point path in 2026. In contrast, Governors Michelle Bowman and Christopher Waller are projected to support only one additional hike this year.
While the median projection for the policy rate is 4.125% for the end of 2026, the longer-run rate estimate has reached a post-pandemic high of 3.2%. Deutsche Bank suggests the committee may shift toward a less hawkish stance in 2027 as specific officials rotate off the voting committee.
Keep reading in the app
The full story and every source, free in the app.
Coming soonGoogle Play