Bank of America Global Research recently stated in a note that they anticipate the Federal Reserve raising interest rates to 6%. Not just for the US but for other countries throughout the world as well, rising inflation has been a worrying problem. Global central banks have been working hard to contain rising inflation and avert the threat of a recession.
Also read: Crypto and SEC: Here’s How the SEC Brought its Crackdown Game in February 2023
The Fed has been boosting interest rates to bring inflation under control. However, the recent speculation by Bank of America is higher than the earlier expected interest rate of 5.4% by traders.
Bank of America says strong US consumer demand will force interest rate hike
According to Bank of America, the possibility of a rise in interest rates is likely due to strong US consumer demand and a tight labor market. The bank also mentioned that it could possibly push the central bank to fight to reduce inflation for a longer period of time.
“Aggregate demand needs to weaken significantly for inflation to return to the Fed’s target. Further supply-chain normalization and a slowdown in the labor market will help, but only to a degree,” said Bank of America on Feb. 27.
Also read: BNB Price Prediction for March 2023
JPMorgan CEO Jamie Dimon also mentioned last month that interest rates could rise above 5%.