Deutsche Bank Questions Bessent's Rate Cut View, Says It Contradicts Fed Models

According to ChainCatcher, citing Jinshi News, Deutsche Bank interest rate strategists stated that US Treasury Secretary Bessent’s view that the Federal Reserve’s interest rates are more than one percentage point above the model’s appropriate level is incorrect. The Deutsche Bank strategist team pointed out that the Fed’s monetary policy report does not explicitly indicate a rate cut, and with the current federal funds rate between 4% and 4.65%, a 25 basis point rate cut “may be reasonable.”