Bank of America: It is unlikely that the Fed will signal a rate cut in September, and may cut rates once in December.

Odaily Planet Daily News According to economists at the Bank of America, the Fed is expected to maintain its interest rate policy in July, while indicating progress has been made in inflation. The bank’s economists said in a statement that the Fed is optimistic about the possibility of a recent rate cut, but it is unlikely to signal that a rate cut in September is a certainty. They pointed out: “(A rate cut in September) is possible, but it depends on the data. This is the overall tone of a large number of FOMC members who have recently made public statements. Although the inflation data is encouraging, more evidence is needed before normalizing interest rate policy.” Overall, the Bank of America still believes that the Fed will cut interest rates once this year in December, and is not too concerned about the risk of a significant economic slowdown. Economists say, “We believe that the market is becoming overly optimistic about the upcoming rate cut cycle.” (FX168)