The U.S. Federal Reserve may hike interest rates to nearly 6%, BofA Global Research said, as strong U.S. consumer demand and a tight labor market would force the central bank to battle inflation for longer.
"Aggregate demand needs to weaken significantly for inflation to return to the Fed's target.
Further supply-chain normalization and a slowdown in the labor market will help, but only to a degree," said BofA in a noted dated Feb. 27.BofA's hawkish stance comes after it recently added expectation for another quarter basis-point hike inThe brokerage expects the U.S. economy to tip into recession by the third quarter of 2023.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Fed has to crush consumer demand to hit inflation target: BofAThe Fed has to crush consumer demand with much higher rates if it wants to get inflation under control, Bank of America says
Read more »
EUR/USD seen at 1.05 by mid-year, recovery to 1.10 expected by year-end – BofAEconomists at Bank of America Global Research target EUR/USD at 1.05 by the first half of 2023 and 1.10 by year-end. Inflation is likely to imply near
Read more »
GBP/USD Price Analysis: Downside looks favored as US PCE data supports more rates from FedGBP/USD Price Analysis: Downside looks favored as US PCE data supports more rates from Fed GBPUSD Fed RiskAversion ChartPatterns SupportResistance
Read more »
USD/CHF reclaims 0.9400 as US consumer spending recovery affirms more rates from FedThe USD/CHF pair has reclaimed the round-level resistance of 0.9400 after a mild correction in the early Asian session. The Swiss franc asset was heav
Read more »
'The market has gone too far:' Chief global strategist predicts when the Fed will cut ratesMarkets have not fully priced in the Fed's next moves, Seema Shah of Principal Global Investors told CNBC.
Read more »
NZD/USD slides towards 0.6100 amid fears of downbeat NZ Consumption, higher Fed ratesNZD/USD bears keep the reins at the lowest levels since November 2022, down half a percent near 0.6130 during early Monday, as downbeat New Zealand (N
Read more »