Bank of America says it sees seven Fed rate hikes this year

Jan 28 (Reuters) - Bank of America economists said on Friday that they expect the Federal Reserve to hike rates by 25 basis points seven times this year, beginning in March, adopting one of the most aggressive views on Fed tightening among major banks.

Economists have scrambled to update rate hike expectations since the Fed on Wednesday said it was likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what its chief Jerome Powell pledged will be a sustained battle to tame inflation.

"The Fed has all but admitted that it is seriously behind the curve," the Bank of America economists said in a report, adding that the aggressive tightening "should affect the economy with a lag, weighing on 2023 growth."

Other banks have also increased their expectations on rate hikes. For example, Deutsche Bank expects five increases this year, TD Securities sees four, and BNP Paribas forecasts as many as six.

Fed funds futures traders are pricing in almost five interest rate increases by year-end, with four likely by September.


Bank of America raised its 2022 fourth quarter forecast on the core personal consumption expenditures (PCE) index to 3.0%, from 2.6%, saying that "an even faster-than-expected drop in unemployment and longer-than-expected supply disruptions mean more inflation."

It also cut its 2022 U.S. economic growth forecast to 3.6%, from 4.0%, noting that "a combination of supply and demand factors points to weaker growth this year."

Bank of America said it now expects a peak fed funds rate of 2.75% to 3.0%.
Reporting By Karen Brettell Editing by Chizu Nomiyama and Tomasz Janowski

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。