Bank of America: Federal Reserve may postpone interest rate cuts until the second half of 2027

Bank of America predicts that the Federal Reserve will postpone interest rate cuts until the second half of 2027 due to high inflation and good job growth. Previously, the Bank of America had expected the Federal Reserve to cut interest rates once each in September and October this year, partly based on the expectation that Trump may nominate Kevin Walsh to replace Powell as Federal Reserve Chairman. However, Bank of America economists stated in a report on May 8th (UTC+8) that they no longer expect the Federal Reserve to cut interest rates this year, and mentioned that factors such as the Iran war, tariffs, and artificial intelligence have increased the difficulty of interest rate forecasting.