Deutsche Bank expects three 25bp Fed rate hikes... adds one more in January

Deutsche Bank added a January rate hike to its Federal Reserve forecast, raising its projected path from two to three 25-basis-point increases, following the release of October U.S. consumer price data. The bank now expects hikes in December, January and March, according to Reuters. The October CPI rose 0.4% month-over-month, topping the 0.3% consensus of economists surveyed by Reuters by 0.1 percentage point, and the January addition came after that release. Fed Governor Christopher Waller said in a speech on the same day that he leaned toward supporting a 25-basis-point hike in December. The revision matters because it signals a more persistent inflation fight than previously assumed, and investors will watch upcoming inflation prints and Fed commentary for confirmation of the faster tightening path.