BOFA: Market Likely to Soon Price in Fed Jan Cut
BlockBeats News, December 5th: Bank of America pointed out that despite the Federal Reserve sending a cautious policy signal, the market may soon start to more actively bet on a rate cut in January next year. The bank expects the Fed to cut rates by 25 basis points in December, while issuing a more hawkish guidance and showing dissenting views, with its economic forecasts expected to indicate stronger growth and lower inflation.
Bank of America believes that given the large amount of data to be released before January, Chairman Powell will find it difficult to effectively suppress the market's expectations of further easing. Analysts stated that with the market focusing on the upcoming data releases, Powell is unlikely to change the market's policy expectations based on "data dependency." (FXStreet)
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