Bank of America: Fed Unlikely to Cut Rates Before 2027 (Jin Shi Data APP)

According to Odaily Planet Daily, the latest forecast from Bank of America indicates that the Federal Reserve will delay interest rate cuts until the second half of 2027, primarily due to persistently high inflation and robust employment growth. The global research division of Bank of America had previously anticipated two rate cuts this year, in September and October. This view was partly based on the expectation that Trump would nominate Kevin Warsh to replace Jerome Powell as Fed Chair, and that Warsh would guide policymakers toward adopting accommodative monetary policies. However, this outlook has shifted as the economic landscape has evolved.

Bank of America economists now state, "We no longer expect the Fed to cut rates this year." They also note that multiple economic shocks—including the war in Iran, tariffs, and the rise of artificial intelligence—have made forecasting interest rate movements more difficult. (Jin Shi)