The post Deutsche Bank Backs December Fed Cut as Odds Surge appeared on BitcoinEthereumNews.com. Deutsche Bank now joins markets in leaning toward a December interest-rate cut, calling for a 25-basis-point move from the Federal Reserve. At the same time, prediction platform Polymarket shows odds for that outcome surging to 84 percent, while alternative scenarios fade. Deutsche Bank Sees December Fed Cut, Then Long Pause Until 2026 Deutsche Bank analysts now expect the Federal Reserve to cut interest rates by 25 basis points at its December meeting and then keep policy unchanged for an extended period. In their latest forecast, they see the central bank holding rates steady through 2025 and into 2026 as officials watch how the economy absorbs earlier tightening. At the same time, the bank’s economists project that the Fed will not move again until the third quarter of 2026. They anticipate another 25 basis point cut around that time, which would gently lower borrowing costs while keeping policy in restrictive territory. This path suggests that Deutsche Bank expects inflation to ease without a sharp downturn, allowing the Fed to move slowly rather than launch a rapid cutting cycle. The call contrasts with market pricing that leans toward a series of rate cuts starting sooner if growth weakens or inflation falls faster than expected. However, Deutsche Bank’s baseline assumes that the Fed will stay cautious, prioritizing its inflation target and waiting for clearer evidence before delivering any additional relief after December. Polymarket Odds Show Sharp Jump in December Rate-Cut Expectations Meanwhile, Polymarket data shows a clear surge in expectations for a 25-basis-point Federal Reserve rate cut in December. The “25 bps decrease” contract now stands at 84 percent, reflecting a strong intraday jump of 13 percentage points from earlier levels. This move signals a rapid shift in positioning as traders price in a higher likelihood of easing at the upcoming FOMC meeting.… The post Deutsche Bank Backs December Fed Cut as Odds Surge appeared on BitcoinEthereumNews.com. Deutsche Bank now joins markets in leaning toward a December interest-rate cut, calling for a 25-basis-point move from the Federal Reserve. At the same time, prediction platform Polymarket shows odds for that outcome surging to 84 percent, while alternative scenarios fade. Deutsche Bank Sees December Fed Cut, Then Long Pause Until 2026 Deutsche Bank analysts now expect the Federal Reserve to cut interest rates by 25 basis points at its December meeting and then keep policy unchanged for an extended period. In their latest forecast, they see the central bank holding rates steady through 2025 and into 2026 as officials watch how the economy absorbs earlier tightening. At the same time, the bank’s economists project that the Fed will not move again until the third quarter of 2026. They anticipate another 25 basis point cut around that time, which would gently lower borrowing costs while keeping policy in restrictive territory. This path suggests that Deutsche Bank expects inflation to ease without a sharp downturn, allowing the Fed to move slowly rather than launch a rapid cutting cycle. The call contrasts with market pricing that leans toward a series of rate cuts starting sooner if growth weakens or inflation falls faster than expected. However, Deutsche Bank’s baseline assumes that the Fed will stay cautious, prioritizing its inflation target and waiting for clearer evidence before delivering any additional relief after December. Polymarket Odds Show Sharp Jump in December Rate-Cut Expectations Meanwhile, Polymarket data shows a clear surge in expectations for a 25-basis-point Federal Reserve rate cut in December. The “25 bps decrease” contract now stands at 84 percent, reflecting a strong intraday jump of 13 percentage points from earlier levels. This move signals a rapid shift in positioning as traders price in a higher likelihood of easing at the upcoming FOMC meeting.…