BofA Analyst Considers 'Extreme Scenario' of No Interest Rate Cuts in 2024
Bank of America is weighing an "extreme scenario" where major central banks like the Fed and ECB do not cut interest rates at all in 2024 due to stubbornly high inflation and strong economic growth. Currently, markets are pricing in around 6 rate cuts from the Fed and other central banks starting in the spring, but BofA sees fewer cuts as likely, given inflation and tight labor markets. Recent comments from Fed and ECB officials have also cast doubt on aggressive rate-cutting, pushing up bond yields in response.
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00:00 It's Benzinga and here's what's on the block. Bank of America is weighing an extreme scenario
00:05 where major central banks like the Fed and ECB do not cut interest rates at all in 2024
00:09 due to stubbornly high inflation and strong economic growth. Currently, markets are pricing
00:13 in around six rate cuts from the Fed and other central banks starting in the spring, but B of A
00:17 sees fewer cuts as likely given inflation and tight labor markets. Recent comments from Fed and ECB
00:23 officials have also cast doubt on aggressive rate cutting, pushing up bond yields in response.
00:27 Stubbornly high oil prices and wage growth in recent U.S. data are adding to inflation
00:31 concerns for central bank policy makers. For all things money, visit Benzinga.com.