Nordea Expects Three More Fed Rate Hikes on Labour Strength

Nordea analysts Ole Håkon Eek-Nielsen and Jan von Gerich argue the Federal Reserve is likely to deliver three more rate hikes over coming quarters. They say labour market strength supports further tightening as the central bank tries to bring inflation back to target.

In their view, the resilient labour market gives the Fed room to keep raising rates even as it monitors inflation. The expectation of additional hikes suggests a more hawkish policy path than if employment were softening.

The note highlights labour data as a key input for the Fed's next decisions, with the analysts expecting continued upward pressure on rates.