Deutsche Bank: The Federal Reserve May Not Cut Interest Rates Until December

Analysts at Deutsche Bank Research Center stated in a report that the Federal Reserve might keep the policy rate unchanged before cutting rates in December, and then further ease policy next year. "Our baseline assumption remains that the next rate cut will be in December, followed by two more cuts in the first quarter of 2026, each by 25 basis points."

Analysts said that the easing of tensions between China and the United States reduces the risk of further deterioration in the U.S. labor market, but other tariff measures may keep inflation at a disturbingly high level.