Bank of America predicts that the Federal Reserve will abandon its loose tendency and not cut interest rates this year

Bank of America expects the Federal Open Market Committee to lift its accommodative stance and will not cut interest rates this year. Bank of America expects the Federal Open Market Committee to maintain the policy rate at 3.5% -3.75% at its June meeting. The economic forecast summary will show rising inflation and falling unemployment, and a few decision-makers may predict a rate hike. Bank of America stated that Federal Reserve Chairman Kevin Walsh will not submit a forecast and will lean towards a more accommodative stance at a press conference, stating that the supply shock is a one-time event, that the Fed should be forward-looking in terms of AI induced inflation declines, and that there are no issues with the truncated mean personal consumption expenditure price index (PCE) and wage inflation.