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BofA Predicts Fed Rate Hike in October as September Inflation Hits 3.7%
According to Bank of America, the Fed is likely to raise rates in October after September inflation data came in hotter than expected. U.S. consumer prices rose 3.7% year-over-year in September, up from 3.4% in August, while core inflation reached 2.6%, both above the Fed's 2% target. BofA's analyst team, led by Stephen Juneau, reiterated that elevated inflation pressure makes an October rate hike plausible. Market reaction was swift. The implied probability of a Fed rate hike in October jumped
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