Bank of America Forecast: Federal Reserve to Hike Rates Three Times in 2026, Holds Steady This Year

Bank of America has significantly revised its outlook for Federal Reserve policy. It now forecasts the Fed will initiate a rate hike cycle in late 2026, with three consecutive 25-basis-point increases in September, October, and December. Interest rates are expected to remain unchanged this year. This updated projection reflects a reassessment of inflation trends and economic growth.

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