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of America Predicts Three Fed Rate Hikes as Inflation PersistsWalter Bloomberg said on X that Bank of America now expects the Federal Reserve to raise interest rates three times this year, a significant shift from its earlier view that rates would stay unchanged. The bank said stronger economic data, stubborn inflation, and recent comments from Fed Chair Kevin Warsh led to the revised forecast.
Bank of America expects the Fed to increase rates by a quarter percentage point in September, October, and December. If those hikes happen, the benchmark rate would rise to between 4.25% and 4.5%, up from the current range of 3.5% to 3.75%.
BANK OF AMERICA SEES THREE FED HIKES
Bank of America expects the Federal Reserve to raise interest rates three times this year, shifting from its prior view of no changes. The bank cites stronger economic data and a more hawkish Fed tone focused on inflation under new chair
- *Walter Bloomberg (@Deltaone) June 22, 2026 Why Bank of America Changed Its Forecast In a note released Monday, Bank of America pointed to last week's Federal Open Market Committee meeting as a major turning point. Half of policymakers projected future rate hikes, prompting analysts to reconsider their outlook. Besides, Kevin Warsh's recent comments signaled a tougher stance on inflation than many investors expected.
The Fed kept interest rates unchanged during its latest meeting. However, Bank of America expects policymakers to maintain that stance next month before beginning rate increases in September.
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