Bank of America still forecasting a December Federal Open Market Committee (FOMC) rate cut

BoA’s key takeaways from the Fed meeting and Powell’s presser:

• At the May FOMC meeting, the Fed acknowledged that they had taken on board some of the signals from the recent inflation data
• The Fed is reducing the pace of runoff to lower the risk of a disruption in funding markets
• We retain our view for a first rate cut in December on the idea that inflation will remain stickier and slower to come down

BoA add that the Fed has shifted to wait-and-see mode.

More on the FOMC:

• Forexlive Americas FX news wrap: Fed pushes back against rate hike fears

This article was written by Eamonn Sheridan at www.forexlive.com.