Bank of America sees markets pricing January Fed rate cut despite cautious signals

Bank of America anticipates markets may soon price in a January Federal Reserve rate cut more aggressively despite cautious policy signals from the central bank, Jin10 reports. The bank expects a 25 basis point cut in December alongside hawkish guidance and potential dissents, with economic projections likely showing stronger growth and lower inflation. Analysts note Fed Chair Jerome Powell may struggle to suppress expectations for further easing given the volume of data releases scheduled before January, making it difficult to shift market focus away from data-dependent policy expectations.