BofA joins growing chorus expecting Fed rate cut in December
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Bank of America (BofA) Global Research has become the latest major brokerage to project an interest rate cut by the US Federal Reserve at its December policy meeting, adding to the building consensus that the central bank may finally kick off its easing cycle. Expectations have strengthened over the past week as dovish commentary from key Federal Open Market Committee (FOMC) voters and signs of cooling in the labour market raised hopes for lower borrowing costs. BofA’s call aligns it with global heavyweights, including J.P. Morgan and Goldman Sachs, all of whom now anticipate a 25-basis-point reduction when policymakers convene on December 9–10. Forecasts have shifted decisively as soft employment data and slowing wage growth suggest the Fed may have sufficient room to loosen policy after holding rates steady for much of the year. Traders are also leaning heavily toward a cut. According to the CME FedWatch Tool, markets are pricing in an ...