BofA Forecasts Fed Rate Cut of 25 Basis Points in September, Anticipates Gradual Policy Softening
Publication Time:2024-08-04 11:46:06
In its latest analysis report, Bank of America pointed out that, considering the weak performance of the ISM manufacturing report and other related data, as well as the disappointing results of the July non-farm employment report, these factors combined have strengthened market confidence in the Federal Reserve's action to cut interest rates in September. As a result, Bank of America has adjusted its outlook on monetary policy prospects, predicting that the Federal Reserve will adopt a more accommodative policy stance. Specifically, they forecast that the Federal Reserve will implement a 25 basis point rate cut at its meeting in September. Notably, while the expectation for this round of rate cuts has already emerged, the report also emphasizes the Fed's gradual easing policy strategy. Additionally, expectations for future interest rate trends were also adjusted, with the final interest rate forecast lowered to 3.25%-3.5%, reflecting concerns about the cooling speed of the economy possibly exceeding expectations, thus reducing the need for maintaining long-term high-interest rate policies.
rate cut
Federal Reserve
Monetary Policy
Economic Outlook