Danske Bank: The Federal Reserve will raise interest rates in 2026 and 2027, and US interest rates will rise

According to JinShi Data, Danske Bank analysts Kirstine Kundby Nielsen and Jens Peter Sorensen predict that the Federal Reserve will raise interest rates in December 2026 and March 2027, and US interest rates will rise in the coming year. Analysts predict that within the next year, the 2-year and 10-year US dollar swap rates will rise to 4.15% and 4.50%, respectively. Dansk Bank expects that the deterioration of the US debt burden will put upward pressure on the long end of the yield curve. The risk is that the speed and extent of interest rate increase by the Federal Reserve will exceed Dansk Bank's current forecast.