Bank of America (BofA) forecasts that Federal Reserve Chair Jerome Powell will refrain from providing specific forward guidance following the upcoming FOMC meeting. This prediction stems from conflicting economic signals, with strong labor market data contrasting with weaker consumption figures, complicating the economic outlook.
BofA also anticipates that quantitative tightening will cease immediately after the meeting. The bank projects the first interest rate cut to occur in October 2025, with additional cuts expected in June, September, and December 2026.
BofA Anticipates No Clear Fed Guidance, First Rate Cut in October 2025
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