Deutsche Financial institution base case is now for a better Fed terminal fee than beforehand anticipated

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Deutsche Financial institution, in short:

• base case for 2025 is stronger US development and inflation
• larger FOMC terminal fee than beforehand anticipated
• reverse
  applies to Europe

On the US DB:

• assumes modest US
  tax cuts
• robust deregulation efforts
• extra supportive
  monetary situations
• assume a 10%
  improve within the tariff fee on imports from China in H1 (ratcheting
  up an additional 10pp in H2)
• equalisation of tariff charges on motor
  autos with Europe
• assume a 5% common baseline tariff (extra probably
  to be applied late 2025/early 2026)

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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