Economists at Nordea think central banks still have a lot of work to do, and risks remain tilted toward this hiking cycle continuing for considerably longer.

Fed will probably need to bring the Fed funds rate up close to 6%

“The resilient economy implies central banks will need to hike rates to ever higher levels.”

“We see the Fed’s benchmark approach 6% and the ECB’s 4% later this year.”

“Also longer US yields will continue to climb, and we target 4.5% for the 10-year Treasury yield.”