Bank of America is once again expecting the Federal Reserve to cut interest rates in December.

Economists at Bank of America have joined other institutions in adjusting their forecast for the Federal Reserve's December interest rate meeting, now expecting the Fed to cut its policy rate by 25 basis points. The economists cited the September jobs report showing a spike in the unemployment rate to 4.44%, as well as New York Fed President John Williams' support for further accommodation after the data release. Other factors influencing their decision include weak ADP data, the assessment of the labor market in the Beige Book, and Fed Chair Powell's reluctance to push back against market pricing of an 80% chance of a 25 basis point rate cut.