BofA Predicts Fed Rate Cuts Amid Soft Jobs Report

Bank of America Global Research expects the U.S. Federal Reserve to implement two 25 basis point cuts in September and December due to a soft jobs report. This forecast deviates from their earlier stance, which did not anticipate any cuts within the year.

In light of a recent soft jobs report, Bank of America Global Research announced on Friday that it anticipates the U.S. Federal Reserve to enact two interest rate cuts within the year. Specifically, the Wall Street brokerage expects 25 basis point reductions in both September and December.

This latest prediction marks a shift from Bank of America's previous outlook, which foresaw no rate cuts in 2023. The adjustment suggests a response to ongoing economic signals, highlighting the influence of labor statistics on monetary policy decisions.

Observers are keenly watching the Federal Reserve's movements, as the institution's policies play a crucial role in shaping economic conditions. The anticipated cuts might impact various sectors, potentially easing borrowing costs and influencing business investment strategies.

(With inputs from agencies.)