Bank of America: Fed unlikely to signal rate cut in September, may cut once in December.

Odaily Planet Daily News According to economists at Bank of America, the Federal Reserve is expected to keep the Intrerest Rate policy unchanged in July, while indicating progress in addressing drop inflation. The bank’s economists said in a statement that the Fed is optimistic about the possibility of a recent rate cut, but is unlikely to signal that a rate cut in September is a done deal, stating, “(A rate cut in September) is possible, but it depends on the data. This is the overall tone of many FOMC members who have recently given public speeches. Although the inflation data is encouraging, more evidence is needed before policy Intrerest Rate normalization begins.” Overall, Bank of America still believes that the Fed will cut rates once in December this year, and is not too concerned about the risk of a significant economic slowdown. Economists said, “We believe that the market is once again too optimistic about the upcoming rate cut cycle.” (FX168)