Bank of America significantly revised its forecast: it is unlikely that the Federal Reserve will cut interest rates before 2027.

According to the latest forecast from Bank of America, the Federal Reserve will postpone interest rate cuts until the second half of 2027, mainly due to high inflation levels and positive employment growth trends. Bank of America's global research department had previously predicted that the Fed would cut interest rates once in September and once in October this year, partially based on the expectation that President Trump's nominee Kevin Warsh would replace Jerome Powell as the Fed chair and guide policymakers to adopt looser monetary policy measures. However, now with changes in the economic situation, this view has changed. Bank of America economists stated in a report to clients on Friday, "We no longer expect the Fed to cut rates this year." They also pointed out that multiple factors, including the Iran war, tariffs, and the rise of artificial intelligence, have made predicting rate changes more difficult.