Bank of America has revised its forecasts regarding the Federal Reserve's interest rate reduction process. According to the bank's latest forecast, further rate cuts are not expected this year due to high inflation and favorable employment prospects. The bank also predicted that rate reductions could be postponed until the second half of 2027.

Earlier, the bank forecasted that the Fed would cut interest rates twice this year, in September and October, based on expectations that U.S. President Donald Trump would appoint Kevin Warsh to replace Jerome Powell as Fed Chair and that Warsh would support a more accommodative monetary policy. However, changes in economic forecasts have led to a revision of these expectations.