Denmark's Danske Bank pushes back on Fed rate cut expectations

Mars Finance News, on May 20, analysts from Danske Bank Research Center stated in a report that due to the easing risk of tariff-driven economic recession, the institution has postponed its Federal Reserve rate cut prediction. Danske Bank now expects the next Fed rate cut to be in September, a quarter later than the previously predicted June. However, they maintain their terminal rate forecast at 3.00%-3.25%. As the Federal Reserve begins to cut rates quarterly, the final rate is now expected to be reached in September 2026. Loose financial environment, lower tariffs, and better-than-expected macroeconomic data in April have reduced the necessity of near-term rate cuts. However, in the long term, structural growth slowdown and continued low credit growth still suggest further rate cuts in the future. (Jinshi)