Nordea Bank in Sweden expects the Federal Reserve to raise interest rates by 25 basis points each in December and March.

Jussi Hiljanen, chief interest rate strategist at Nordea Bank in Sweden, believes that with better-than-expected US growth, monetary policy is not restrictive and the Federal Reserve still needs to tighten policy. Despite Federal Reserve Governor Waller's hints at a possible 50-basis-point rate hike, Nordea Bank of Sweden expects most Fed officials to favor a gradual approach every other meeting, predicting a 25-basis-point rate hike in December and another 25-basis-point hike in March. The 10-year Treasury yield is expected to hover around 5% in the coming weeks. (Source: Jinshi Data)