Bank of America Delays Rate Cut Forecast to 2027 H2 Amid High Inflation, Strong Jobs Growth

GateNews
According to Bank of America's global research division on May 9, the Federal Reserve will delay interest rate cuts until the second half of 2027, citing elevated inflation and strong employment growth. The bank previously forecast rate cuts in September and October 2026. Economists at BAC stated in a Friday report to clients: "We no longer expect the Federal Reserve to cut rates this year." The revision reflects shifting economic conditions and multiple risk factors affecting monetary policy decisions.
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