BofA Expects Fed to Hold Rates in July, Citing Unprecedented Nature of Hike Below 60% Odds
Bank of America (BofA) expects the U.S. Federal Reserve to maintain interest rates in July, despite markets pricing in a small chance of a hike. The bank states that a July increase would be "unprecedented," noting the Fed has not hiked rates since 1994 when market-priced odds were below 60%. BofA identifies higher oil prices as the main inflation risk and remains bullish on the U.S. dollar.
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