Deutsche Bank now expects the Federal Reserve to cut interest rates three times this year, previously expecting two times.

German bank economists have raised their forecast for the number of interest rate cuts by the Federal Reserve for the remaining time until 2025 from two to three, citing a slowdown in the job market and decreasing inflation. "Given recent data showing further weakness in the labor market and slightly lower inflation pressures than expected, we have moved up a rate cut that was originally anticipated for next year to this year," the team led by Matthew Luzzetti at Deutsche Bank wrote in a report on Friday. Deutsche Bank now expects the Federal Reserve to cut interest rates by 25 basis points next week, as well as in October and December. Previously, it was expected that the Federal Reserve would cut rates in September and then wait until December for another cut.