Sep. 17 at 4:10 PM
$BAC CEO predicts the Federal Reserve will hold rates steady throughout 2025, a stark contrast to market expectations (currently shows a 91.2% probability of at least a -25bps cut)
"Inflation must be removed from the system really through the end of '26 into '27 down to the 2% level" before policymakers would consider easing
This extended timeline suggests a much longer period of restrictive monetary policy than many investors currently anticipate.
BoA internal data paints a picture of remarkable consumer resilience. Spending among the bank's customers rose +5% b/n July 2024 & July 2025, while personal credit line usage has dropped by -30% since pre-pandemic levels. Credit quality remains robust across it's customer base, indicating broad-based financial health
BoA economists believe the Fed will eventually begin cutting rates, but not until the middle of next year, with a target of normalizing around 3% to 3.5%
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