Institution: The Federal Reserve may raise interest rates twice.

Danske Bank senior analyst Kirstine Kundby-Nielsen and chief analyst Jens Peter Sorensen stated in a report that they expect the Federal Reserve to raise interest rates twice - in December 2026 and March 2027 - to bring the federal funds rate to 4.00%-4.25%. "However, we emphasize that there is a risk of rate hikes coming sooner and that the number of rate hikes may exceed two," they said. Kevin Wash, in his first meeting as Fed chairman, sent a clear signal that the Fed is increasingly abandoning the use of forward guidance around future monetary policy decisions. "All signs point to a greater degree of discretion in future policy decisions," said the analysts at Danske Bank.