Odaily News Bank of America Corp. Chief Executive Brian Moynihan said Tuesday that the bank expects the Federal Reserve to keep interest rates unchanged this year and next.
"It will take years to squeeze out inflation, and the Fed's efforts to control inflation are likely to continue through 2026," he told a conference in Washington. Friday's personal consumption price index (PCE) report is expected to show the Fed's progress in fighting inflation.
Fed policymakers are keeping interest rates unchanged for now. They themselves said they are looking for more evidence that inflation is falling back to their 2% target before they feel comfortable cutting rates. They cited uncertainty about the impact of Trump's planned tariffs, tax cuts, immigration crackdowns and continued layoffs of federal policy employees on prices, economic growth and the labor market. (Jinshi)