Bank of America no longer expects the Federal Reserve to cut interest rates in 2025

ChainCatcher news, according to Jinshi reports, U.S. Bank economist Stephen Juneau stated in a report on Monday, "After the stronger-than-expected employment report was released, we have revised our outlook for the Federal Reserve: we no longer expect any further rate cuts, inflation is above target levels, risks are skewed to the upside, economic activity is strong, and the labor market seems to have stabilized."

Juneau wrote that the movements in inflation and employment are becoming more aligned, making it difficult for the Federal Reserve to justify further easing of monetary policy.

He indicated that policymakers may find themselves having to tighten policy. "Our baseline scenario is that the Federal Reserve will maintain interest rates unchanged for a long time, but we believe the risk of the next action is skewed towards rate hikes. In our view, if core PCE inflation exceeds 3% year-on-year and long-term inflation expectations become unanchored, then the Federal Reserve may resume rate hikes."