Bank of America analyst: Amid rising economic uncertainty, it is expected that the Federal Reserve will maintain interest rate stability

According to a report by Jin Shi, the Federal Reserve is expected to maintain its current policy stance at the FOMC meeting in March. US bank securities analysts predict that the Fed will adopt cautious and prudent policies against the backdrop of rising economic uncertainty. The Federal Reserve may prioritize patience over panic, assessing the balance between slowing economic growth and sustained inflationary pressures while maintaining interest rate stability. Bank of America analysts predict that the latest economic forecast from the Federal Reserve will reflect stagflation factors, with weaker growth forecasts and an upward adjustment in inflation expectations. Although the market has speculated on the timing of a possible interest rate cut, policy makers may reiterate a data-driven approach, emphasizing the need for further clarification of the economic outlook before making any policy changes. Investors will closely monitor Federal Reserve Chairman Powell's speech to understand how the Fed views evolving risks, including supply side disruptions, labor market resilience, and geopolitical uncertainty.