Bank of America still look for 1 more Fed rate hike, +25bp in November (75bp cuts in 2024)

Bank of America says hawks and doves both got something from Jackson Hole:

BoA’s main takeaways:

  • Fed Chair Powell’s speech at Jackson Hole was somewhat balanced, with hawkish and dovish elements.
  • Markets took the comments as slightly hawkish, moving closer to our call for a 25bp hike in Nov & only 75bp of cuts in 2024.
  • We remain comfortable with our call for one more 25bp hike in November and 75bp of cuts next year, starting in June and proceeding at a quarterly cadence.

This article was written by Eamonn Sheridan at Source