BofA only top brokerage to raise forecast for Fed's 2024 rate cuts

Published On Sep 19, 2024, 8:54 AM

Bank of America (BofA) has become the only major brokerage to increase its forecast for the Federal Reserve's interest rate cuts in 2024. Initially predicting a series of smaller cuts, BofA now expects a significant reduction of 75 basis points by the end of the year. This comes after a larger-than-usual cut of 50 basis points was announced earlier by the Fed. Other brokerages, like Goldman Sachs and Citigroup, maintain less aggressive cut forecasts but still expect reductions over the next year. BofA anticipates additional cuts into 2025 to lower the target rate further, showing a shift towards a potentially more dovish stance from the Fed.