Bank of America economists: The Federal Reserve may pause interest rate cuts in January next year

ChainCatcher news, according to Jinshi reports, Bank of America economist Stephen Juneau wrote in a report to clients on Thursday, "The upcoming potential policy changes, higher tariffs, deficit-financed tax cuts, and tighter immigration policies could all put upward pressure on prices.

In fact, due to these policy changes, we predict that the core PCE inflation rate will hardly decline over the next two years. At next week's meeting, the Federal Reserve will also have to acknowledge the lack of progress on inflation, and we believe the Fed may pause interest rate cuts in January next year, with the risk that policy changes (during Trump's second term) could make this pause prolonged."