By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Markets > Stocks > BofA expects Fed to pause in June as inflation, labor market show signs of cooling
Stocks

BofA expects Fed to pause in June as inflation, labor market show signs of cooling

News Room
Last updated: 2023/05/13 at 12:13 PM
By News Room
Share
2 Min Read
SHARE

© Reuters. BofA expects Fed to pause in June as inflation, labor market show signs of cooling

BofA analysts see “good reasons” for the U.S. Federal Reserve to pause in June and “little reason” to cut rates.

The analysts are comfortable with their forecast that the at the upcoming meeting in June. BofA’s base-case scenario also sees the Fed staying on hold until it starts to cut rates early next year.

On the other hand, markets continue to expect a more dovish Fed as they are pricing in 3 25-bps rate cuts for 2023 and in total 160-bps cuts until the end of 2024.

“We think the risk to the policy path is still to the upside in the near term. Put simply, inflation is more than double the Fed’s target rate and the unemployment rate is below every FOMC participant’s estimate of the natural rate,” the analysts said in a client note.

“These facts alone suggest that the Fed’s bias would be to hike rather than cut. Things could change quickly if there is a major recession, but the recent data flow favors a more benign slowdown. In our view, rather than lean against a mild recession, the Fed would view it as an acceptable price for bringing inflation back down to target.”

On the data front, the analysts highlighted that the recent releases show that the labor market is going “from red hot to hot” while inflation also continues to cool.

“While there are reasons to be encouraged, inflation is only declining gradually. Moreover, we continue to expect that a rebalancing of the labor market will be needed to restore inflation to the Fed’s two percent target on a persistent basis. Therefore, it is no time to take a victory lap,” the analysts concluded.

Read the full article here

News Room May 13, 2023 May 13, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Client Challenge

Client Challenge JavaScript is disabled in your browser. Please enable JavaScript to…

Donald Trump’s escalating attacks on Federal Reserve unnerve investors

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Spain overtakes Germany as top EU asylum destination

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Brussels stalls probe into Elon Musk’s X amid US trade talks

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

The fight to revive Europe’s shrinking rural areas

Nicolás de la Fuente, a 92-year-old walking his dog on the desolate…

- Advertisement -
Ad imageAd image

You Might Also Like

Stocks

Playa Hotels & Resorts (NASDAQ:PLYA) Delivers Strong Q4 Numbers By Stock Story

By News Room
Stocks

ON24 (NYSE:ONTF) Posts Better-Than-Expected Sales In Q4 By Stock Story

By News Room
Stocks

Evolent Health shares leap on Q4 earnings beat and upbeat guidance By Investing.com

By News Room
Stocks

Chuy’s (NASDAQ:CHUY) Reports Q4 In Line With Expectations But Stock Drops

By News Room
Stocks

Red River Bancshares raises dividend to $0.09 per share

By News Room
Stocks

Ecolab appoints Microsoft executive to board

By News Room
Stocks

Semilux secures $50 million equity deal with White Lion Capital

By News Room
Stocks

US government debt trajectory to push long-term yields higher, says PIMCO

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?