Bank of America has announced its expectation of three interest rate hikes by the Federal Reserve this year, projecting a total of 75 basis points of tightening. The anticipated hikes are scheduled for September, October, and December, which would elevate the federal funds target range to 4.25% to 4.50%. This revised forecast contrasts with the bank’s previous outlook of no rate changes in 2026. This outlook aligns with the Fed’s June 2026 projections, where the median year-end estimate was already leaning toward at least one increase.
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