Bank of America: Expects Fed to Raise Rates Three Times This Year

BlockBeats News, June 22nd. Bank of America currently expects the Fed to raise interest rates three times this year, the latest sign on Wall Street preparing for a more aggressive Fed tightening.

The bank's economists previously expected the Fed to keep rates unchanged this year. The reason for their adjusted outlook is the strong economic data and the Fed's hawkish communication, implying a more proactive approach to addressing inflation. Bank of America's forecast of three rate hikes remains in the minority: currently, only 19% of market investors expect three rate hikes, although this percentage has risen from 3% a week ago. Investors believe that two rate hikes this year are the most likely outcome. (FXStreet)