Bank of America includes a Federal Reserve interest rate hike in January 2027 in its forecast

Reuters, November 13 - Bank of America Global Research stated on Friday that, given October's CPI data (link) exceeded expectations and bolstered market anticipation of rising lending costs, the institution now forecasts that the Federal Reserve will raise rates by 25 basis points again in January 2027. Previously, the institution had predicted Fed rate hikes in December and March.

“After the release of October's CPI data, the Federal Reserve appears even further behind the curve in dealing with inflation. It can no longer raise rates once per quarter as it did before,” Bank of America strategists said in the report.

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