Odaily News Economists at Bank of America expect the Federal Reserve to keep its policy rate unchanged in July while indicating that progress has been resumed in reducing inflation. The banks economists said in a note that the Fed is optimistic about the possibility of a near-term rate cut, but is unlikely to signal that a September rate cut is a foregone conclusion, noting: (A September rate cut) is possible, but it depends on the data. This is the general tone of most FOMC members who have spoken publicly recently. While inflation data is encouraging, more evidence is needed before starting to normalize policy rates. Overall, Bank of America still believes that the Fed will cut interest rates once this December, while not too worried about the risk of a sharp economic slowdown. Economists said, We believe that the market has begun to be overly optimistic about the upcoming rate cut cycle again. (Jinshi)