---
title: "Danske Bank Revises Fed Rate Hike Expectations for 2026 and 2027"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287163424.md"
description: "Danske Bank has updated its forecast for U.S. Federal Reserve rate hikes, now expecting increases of 25 basis points in December 2026 and March 2027. This change reflects a stronger outlook for U.S. nominal growth, moving away from a previous forecast of a rate cut to 3.00%-3.25%. Analyst Antti Ilvonen noted that structural inflation is influenced by demand factors, and easing labor market risks, along with AI-driven investments, are supporting real growth and inflation."
datetime: "2026-05-21T05:36:35.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287163424.md)
  - [en](https://longbridge.com/en/news/287163424.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287163424.md)
---

# Danske Bank Revises Fed Rate Hike Expectations for 2026 and 2027

Danske Bank has revised its expectations for the U.S. Federal Reserve's policy adjustments, according to a report by senior analyst Antti Ilvonen on May 21. The bank now anticipates that the next policy changes will occur in December 2026 and March 2027, with a 25 basis point rate hike each time. Previously, Danske Bank had forecasted a rate cut to 3.00%-3.25%. This adjustment is based on an improved outlook for U.S. nominal growth, which is stronger than initially expected. According to Jin10, Ilvonen emphasized that this shift is not solely driven by the Iran war, as demand factors are contributing to more structural inflation. Meanwhile, the downside risks in the labor market have eased, and AI-driven investment demand continues to boost real growth and inflation, while fiscal policy is trending towards an expansionary direction.

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