ICYMI, on Friday Bank of America economists updated their projected rate hike path from the US Federal Reserve.
- forecast +25bp at the next 3 meetings, in March May and june
- then a pause at the July meeting
Citing an economy that's not slowing as quickly as many have expected:
- Resurgent inflation
- solid employment gains
- means…the Fed might have to hike further if inflation, job growth, and consumer demand refuse to soften
BoA see the peak for fed funds at 5.25 - 5.5%.
- and see the first rate cut in March of 2024