The FED has been pausing the interest rate cuts it started in September 2024 since January 2025.
Fed Chairman Jerome Powell and the majority of members are keeping interest rates steady, citing ongoing uncertainty from tariffs.
As interest rate cut hopes continue to intensify in September, Bank of America CEO Brian Moynihan released his forecast.
Speaking to CNBC, the BofA CEO talked about interest rate cuts and the economic situation in the US.
The famous CEO stated that it is unlikely that the FED will cut interest rates this year.
Moynihan stated that the decline in inflation was slower than expected and predicted that interest rate cuts would only begin next year.
“Our economists predict that it will take longer for inflation to decline, and therefore I do not expect the US Federal Reserve to cut interest rates this year.
At this point, it seems likely that the Fed will only begin cutting interest rates next year.”
Finally, Moynihan added that he does not expect the US to enter a recession.
FedWatch data shows a 90% chance the Fed will cut interest rates in September.
Investors are pricing in an 87.5% chance that the Fed will cut interest rates by 25 basis points at the September FOMC meeting, according to CME FedWatch.
*This is not investment advice.