Bank of America, Deutsche Bank Say Fed Won’t Cut Until December
- Banks join chorus of strategists slashing Fed easing calls
- Wednesday’s CPI report triggered steep jump in Treasury yields
This article is for subscribers only.
Economists at Deutsche Bank AG and Bank of America Corp. joined the growing crowd of forecasters who are dialing back expectations for US interest-rate cuts after the consumer-price index rose at a faster-than-expected pace for a third straight month.
US strategists at Deutsche Bank and Bank of America now predict that the Federal Reserve will ease policy just once this year, in December. That’s a sharp reduction in previous forecasts from both firms, which each previously saw the Federal Reserve beginning to ease policy starting in June.