Morning Market Tidbits

BofA Global Research has revised its Fed outlook to call for 75bp of interest rate hikes in 2026, citing sticky inflation and a hawkish Fed reaction function. This shift reflects a pivot away from previous expectations of rate cuts.

Key Takeaways

• 1.BofA expects the Federal Reserve to hike interest rates by 75bp this year, starting in September.
• 2.Sticky inflation is expected to keep Fed policy on hold throughout next year.
• 3.Recent economic data and the June Summary of Economic Projections indicate a more hawkish Fed reaction function.

Table of Contents

• Key takeaways
• What Matters Today
• Hawkish data and reaction function point to hikes
• From risk management to supply shock management
• US GDP Tracking
• Today's economic calendar
• Important Disclosures
• Other Important Disclosures
• Information relating to Non-US affiliates of BofA Securities and Distribution of Affiliate Research Reports
• General Investment Related Disclosures
• Copyright and General Information
• Research Analysts

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