ICYMI: BoA says next FOMC interest rate hike will come in November instead of September

Bank of America responding after the PPI data on Friday out of the US.


BoA argues that despite the unexpected jump in the PPI the Fed’s FOMC isn’t likely to raise rates at its next policy meeting on September 19-20. BoA analysts moved their forecast for what they expect to be the final rate hike to the October 31 – November 1 meeting:

  • “waiting an additional six weeks would give the Fed more time to assess the trajectory of the economy”
  • says there’s been a slowdown in the rate of price growth, even though prices overall might still be rising, pointing out that categories that have experienced three-month annualized inflation at or above 5% is now at 23.2%, the lowest reading since November 2020

This article was written by Eamonn Sheridan at www.forexlive.com. Source