Posted 4/2/2024, 5:16:00 PM
Fed Rate Cuts Could Be Delayed to 2025 If Inflation Stays High, Says Bank of America
- If the Fed can't cut rates in June due to stubborn inflation, it may delay easing until March 2025 according to Bank of America
- Base effects mean year-over-year core PCE inflation unlikely to decline further in second half of 2024
- If no June cut, hard to justify cut later in 2024 when inflation flat or rising slightly
- Bank of America still expects 3 rate cuts this year, with June cut still possible
- Next 2 core PCE readings over 0.3% could rule out June cut if activity holds up