NEW YORK — BofA Global Research moves Fed rate cut forecast to October from December, citing softer U.S. economic data and easing inflationary pressures.
The research arm of Bank of America said the Federal Reserve may act sooner than previously expected. Analysts believe the central bank will cut rates in October to support growth and maintain financial stability.
BofA Global Research moves Fed rate cut forecast to October from December after reviewing recent labor market trends and inflation figures. According to their report, wage growth has slowed, and job creation is moderating, signaling reduced economic momentum.
The bank also highlighted declining consumer confidence and weaker manufacturing data. These factors, combined with easing price pressures, have created conditions for an earlier policy shift.
BofA Global Research moves Fed rate cut forecast to October from December, but added that the Fed’s decision will depend on upcoming data. Any unexpected rise in inflation could delay the move.
The U.S. Federal Reserve has kept rates high to control inflation, which surged after the pandemic. While price growth has cooled, officials remain cautious about declaring victory.
Investors welcomed the revised forecast, as markets had been anticipating a cut later in the year. A sooner rate cut could boost equities, reduce borrowing costs, and ease pressure on households and businesses.
However, some economists warn that acting too early could reignite inflation. They argue the Fed must strike a delicate balance between supporting growth and keeping prices stable.
The October forecast aligns with growing market expectations that the Fed will move faster to prevent a sharper slowdown. For now, traders and analysts will closely monitor upcoming inflation and jobs reports.
The Fed’s next policy meeting will be a key moment. Whether the rate cut happens in October or later, the decision will shape U.S. economic momentum heading into 2026.
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