Bank of America delays expectation of Fed interest rate cut until 2027.

Bank of America currently expects the Federal Reserve to delay the interest rate cut until mid-2027, further postponing it from the previous forecast of the end of 2026. The bank pointed out that the Fed's policy stance is becoming more hawkish, with inflation persistently higher than the target level, coupled with continued high price pressures from oil prices. At the same time, strong growth in private sector employment and a stable unemployment rate also suggest a decreased urgency for the Fed to cut interest rates. Bank of America stated that recent economic data did not show signs of weakness in the labor market that would require an early loosening of policy.