TREE NEWS reports: Bank of America now expects the Federal Reserve to raise interest rates in January, on top of its earlier forecasts for hikes in December and March 2027. The revised call adds a third increase to the bank’s projected tightening path.
BofA now expects a January Fed rate hike, adding to December and March 2027 calls
BofA's shift to a three-hike path signals that parts of the sell-side are pricing a more persistent inflation fight than the Fed's own guidance implies, a meaningful divergence for rate-sensitive assets including tokenized Treasuries and crypto more broadly. The revision matters most for anyone holding duration exposure or leveraged positions tied to the front end of the curve. Whether other banks follow BofA in adding hikes to their forecasts, or treat this as an outlier, is the open question worth tracking.
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