【Bank of America: The Federal Reserve May Delay Rate Cuts Until the Second Half of 2027】

Bank of America predicts that the Federal Reserve will postpone rate cuts until the second half of 2027, citing high inflation and strong employment growth as reasons. Previously, Bank of America had expected the Fed to cut rates once in September and once in October this year, partly based on the expectation that Trump might nominate Kevin Waugh to succeed Powell as Fed Chair. However, in a report on May 8 (UTC+8), Bank of America economists stated they no longer expect the Fed to cut rates this year, mentioning factors such as the Iran war, tariffs, and artificial intelligence that have increased the difficulty of rate forecasts.