Bank of America: It is expected that the Federal Reserve has ended the rate cut cycle in the second half of the year

ChainCatcher news, according to Jin Shi reports, Bank of America analysts stated that Trump's trade, fiscal, and immigration policy agenda is expected to trigger moderate inflation, and they predict that these changes will be reflected in inflation in the second half of 2025. They noted that any additional tariffs in the coming weeks could advance the timeline.

They stated, "A key question is whether the policy changes will affect long-term inflation expectations." They added that market-based inflation indicators remain within historical ranges. Bank of America reiterated its position that the Federal Reserve's rate-cutting cycle has ended, with inflation "above target," and they expect both overall and core CPI to grow by 0.3% month-on-month in January. They wrote, "If our forecast for January CPI is correct, then the rationale for the Federal Reserve to remain on hold will be further strengthened."