[Danske Bank Adjusts Fed Rate Expectations, Predicts 25 Basis Point Hikes in December and March Next Year] Jin10 News, May 21 – Danske Bank Senior Analyst Antti Ilvonen stated in a report that the bank has adjusted its expectations for the Federal Reserve. It now anticipates the next policy adjustments will occur in December 2026 and March 2027, with 25 basis point hikes each time. Previously, Danske Bank had expected the Fed to cut rates to 3.00%-3.25%. This forecast adjustment is based on an improvement in the outlook for U.S. nominal growth, which is stronger than expected. 'Importantly, this shift is not solely driven by the Iran war; we believe demand factors are driving more structural inflation,' Ilvonen said. Meanwhile, downside risks in the labor market have eased, AI-driven investment demand continues to fuel real growth and inflation, and fiscal policy is trending toward an expansionary direction.