Bank of America: As uncertainty rises, the Federal Reserve is expected to keep interest rates stable

ChainCatcher news, the Federal Reserve is expected to maintain its current policy stance at the March FOMC meeting. Analysts at Bank of America Securities anticipate that, in the context of rising economic uncertainty, the Fed will adopt a cautious and prudent policy. The Fed may prioritize "patience over panic," assessing the balance between slowing economic growth and persistent inflation pressures while keeping interest rates stable.

Bank of America analysts expect the Fed's latest economic forecasts to reflect stagflation factors, with growth projections weakening and inflation expectations adjusting upward. While the market has speculated on the timing of potential rate cuts, policymakers may reiterate a data-driven approach, emphasizing the need for further clarity on the economic outlook before making any policy shifts. Investors will closely monitor Fed Chair Powell's remarks to understand how the Fed views the evolving risks, including supply chain disruptions, labor market resilience, and geopolitical uncertainties.