Bank of America: The Federal Reserve is unlikely to signal that a September rate cut is a done deal, and may cut rates once in December.
Odaily Planet Daily Report: Economists at Bank of America expect the Federal Reserve to keep its policy rate unchanged in July, while indicating that progress has been made in reducing inflation. The bank's economists said in a note that the Fed is optimistic about the possibility of a rate cut in the near future, but is unlikely to signal that a September rate cut is a done deal, noting that "(a September rate cut) is possible, but it depends on the data. This is the overall tone of most FOMC members in their recent public speeches. Although the inflation data is encouraging, more evidence is needed before the policy rate normalization process begins." Overall, Bank of America still believes the Federal Reserve will cut rates once in December this year, and is not too concerned about the risk of a significant economic slowdown. Economists said, "We believe the market has once again become overly optimistic about the upcoming rate cut cycle."
