Analysis: "Fed Rate Hike" Nightmare May Come True, Bank of America Says Three Conditions Must Be Met First

Odaily News Wall Street is concerned that escalating conflicts in the Middle East could lead to a surge in international oil prices, potentially reigniting U.S. inflation and prompting the Federal Reserve to pause rate cuts or even switch to rate hikes. Bank of America stated that "whether the Fed will raise rates this year" has become a frequent question from its clients recently. The bank's response is: While this possibility cannot be entirely ruled out, for the Fed to hike rates, several specific conditions must be met, including: a stable labor market, further intensification of inflation, and Powell remaining as Fed Chair. According to the CME FedWatch Tool, Wall Street traders now estimate the probability of the Fed raising rates by the end of this year has reached over 30%, while the probability of a rate cut is only 6.1%. (Cailian Press)