Financial markets are confident the Federal Reserve will cut rates, says Bank of America Corp.’s Michael Hartnett. Rally in banks and interest-sensitive stocks, drop in credit spreads suggest Fed has credibility to cut. US stocks hit record highs on anticipation of rate cut next week. Some concerns about Fed waiting too long. President Trump pushing for rate cuts. Some traders betting on 50-basis-point reduction. Hartnett prefers international stocks to US peers. MSCI ACWI ex-US index outperforming S&P 500.

Read more at Yahoo Finance: BofA Says Investors Back Fed’s Credibility With Rate-Cut Timing