Bank of America: The pause in interest rate cuts by the Federal Reserve may be longer than market expectations.

The Federal Reserve is about to announce its latest FOMC policy rate decision, and the Chicago Mercantile Exchange Group's FedWatch tool shows that the possibility of a rate cut at this meeting is almost zero. Claudio Irigoyen, an economist at Bank of America, stated that the bank believes that delaying easing is the best policy compared to market expectations. He said that rising inflation and declining economic activity will lead to a stagflation situation, making the Fed's work more difficult. Therefore, they should prioritize considering inflation risks and consolidating their credibility. Unless activity data significantly deteriorates, rate cuts should be postponed.