Deutsche Bank expects the Federal Reserve to maintain interest rates in 2026.

Deutsche Bank expects the Federal Reserve to keep interest rates unchanged in 2026, citing oil-driven inflation risks related to the Middle East conflict, resilient economic growth, and tight labor market conditions, all of which leave little room for rate cuts. The brokerage firm had previously predicted a rate cut by the Fed in September. The strategist at Deutsche Bank said in a report on Thursday that a rate cut this year would require a weakening labor market and softening inflation.