BofA Predicts Two Fed Rate Cuts Starting September 2023
CryptoNewsTerminal Staff06 Jun, 2024
BofA Predicts Two Fed Rate Cuts Starting September 2023
Bank of America (BofA), a leading financial institution, has forecasted that the US Federal Reserve (Fed) will initiate interest rate cuts from September 2023 onwards. BofA anticipates two rate cuts to be implemented before the year's end. This move is a departure from the Fed's current stance of raising rates to combat inflation. BofA's prediction is based on its assessment of the economic landscape, which includes signs of slowing growth, declining inflation, and geopolitical uncertainty. The bank believes that the Fed will eventually pivot to a more accommodative monetary policy to mitigate recession risks. The potential rate cuts by the Fed are expected to positively impact financial markets. Reduced interest rates can boost asset prices, lower borrowing costs, and stimulate economic activity. However, the timing and magnitude of the rate cuts will depend on various factors, including incoming economic data and the Fed's own assessment of the economy.
