Morning Market Tidbits

Latest edition · July 14, 2026

BofA Morning Market Tidbits Fed policy is offsides

BofA Research argues that Fed policy remains too accommodative given current economic indicators. They recommend three rate hikes this year to move policy into restrictive territory.

Following their FX and Rates Sentiment survey, BofA analysts highlight that the majority of respondents view monetary policy as accommodative. Supported by persistent inflation and above-potential growth, the firm advises the Fed to reverse previous insurance cuts and hike rates three times this year. Additionally, the report notes that US Q2 GDP tracking has cooled to 1.4% due to weak net exports and inventories.

Key takeaways from the latest edition

• 1.Monetary policy is viewed as too accommodative by market participants, prompting a recommendation for three Fed rate hikes this year.
• 2.US GDP tracking estimate for Q2 2026 has been downgraded to 1.4%.

What this series covers

• Key takeaways
• What Matters Today: Only 10% of respondents to our FX and Rates Sentiment survey believe the current stance of monetary policy is restrictive
• Fed policy is easy
• US GDP tracking
• 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

Edition archive

• BofA Morning Market Tidbits Fed policy is offsides

  July 14, 2026

• BofA Morning Market Tidbits Inflation likely to be revised lower but the underlying story won’t change

  July 2, 2026

• BofA Morning Market Tidbits The Fed has been somewhat quiet following Warsh’s first meeting

  July 1, 2026

• BofA Morning Market Tidbits K-shaped spending could mean sticky cyclical inflation

  June 30, 2026

• BofA Morning Market Tidbits Mid-Year review: Hydration Break

  June 29, 2026

• BofA Morning Market Tidbits Going backwards on inflation

  June 25, 2026