BofA flips the script with bombshell Fed interest-rate outlook
Key takeaways
- Bof A revised its forecast after the Fed left the benchmark federal funds rate unchanged June 17 as almost half of central bank’s policymakers indicated that they expect rates to rise before the end of the year.
- The BofA note is yet another sign that Wall Street expects Warsh to become more aggressive to lower inflation closer to the Fed’s 2% target, a metric the central bank has missed for the last five years.
- Previously, BofA analysts expected the Fed to hold rates steady this year.
Bof A flips the script with bombshell Fed interest-rate outlook Mary Helen Gillespie Wed, June 24, 2026 at 9:07 PM GMT+7 4 min read BAC Bank of America Global Research economists expect the Federal Reserveto raise interest rates three times this year due to Chair Kevin Warsh’s more hawkish stance and the nation’s overall economic resilience despite the Iran War.
Bof A revised its forecast after the Fed left the benchmark federal funds rate unchanged June 17 as almost half of central bank’s policymakers indicated that they expect rates to rise before the end of the year.
The BofA note is yet another sign that Wall Street expects Warsh to become more aggressive to lower inflation closer to the Fed’s 2% target, a metric the central bank has missed for the last five years.