From Financial Modeling Prep: 2024-10-03 06:57:50

Bank of America (BofA) suggests a 50bps rate cut by the Federal Reserve in November is still possible despite mixed U.S. jobs report data. The Fed may consider more aggressive rate cuts if inflation eases and economic growth slows down, balancing inflation control with supporting growth in a challenging economic landscape.

The central concern for the Fed is balancing inflation control with supporting economic growth, with inflation appearing more under control and the labor market showing signs of cooling. BofA believes the Fed’s decision will be influenced by upcoming data on inflation and consumer spending, leaving room for significant policy easing in the near term.

BofA highlights key considerations for the market and policy outlook amid the Fed’s rate-cutting cycle, emphasizing the importance of upcoming data on inflation and consumer spending. While a 50bps rate cut in November is not the base case, it cannot be entirely discounted given the evolving economic conditions.



Read more at Financial Modeling Prep:: Jobs Report Could Still Keep 50bps Fed Cut in Play, Says BofA