BofA changes Fed call; now expects three 25bps rate hikes in 2026, and then on hold next year
- Sees Fed on hold next year
- Inflation is likely to remain sticky, keeping the real policy rate from becoming overly restrictive.
- "We were sceptical of the need for cuts in 2025. Both the data and our updated read of the Fed’s reaction function suggest it will reverse those cuts in short order."
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