Bank of America: Still expects the Fed to cut interest rates in December

Odaily News Stephen Juneau, U.S. economist at Bank of America, said, "We still expect the Fed to cut interest rates in December. We think the data will be in line with expectations, but it is understandable why the market feels that this is a bit like a coin toss. The U.S. economy is still very strong and inflation is still above the target level. We will see deregulation, looser fiscal policy, more protectionist trade policy and stricter immigration policy. All of these will pose upside risks to inflation... The Fed is unlikely to cut interest rates as much as we previously considered because they will see inflation continue to be above its target level." It is reported that Bank of America recently raised its final forecast for the federal funds rate to 3.75%-4.00%, from 3.00%-3.25% previously. (Jinshi)