Bank of America CEO Brian Moynihan has backed a forecast calling for three Federal Reserve rate hikes before year-end, representing one of the most hawkish positions on Wall Street. The predicted hikes totaling 75 basis points would push the federal funds rate from its current 3.50%-3.75% range to 4.25%-4.50%, spread across September, October, and December. The pivot from an initial expectation of flat rates was driven by a persistently hot labor market, stubborn inflation, and rising oil prices. Fed Chair Kevin Warsh’s hawkish stance has reinforced this outlook, with some observers now anticipating the tightening cycle could extend into 2028. Higher rates typically strengthen the dollar and pull capital away from speculative assets like crypto, creating headwinds for Bitcoin and equities.
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