Bank of America Predicts Multiple Fed Rate Hikes Amid Worsening Inflation

Bank of America analysts predict the Federal Reserve will implement three interest rate hikes this year, reversing earlier cuts, due to inflation becoming 'unambiguously worse.' The Fed is expected to take strong action to combat rising prices.

22 Jun, 16:09 — 22 Jun, 16:16

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Why this matters

Federal Reserve interest rate decisions significantly impact borrowing costs for consumers and businesses, influencing economic growth, inflation, and investment. A series of rate hikes signals a more aggressive stance against inflation, which could lead to higher loan rates and potentially slow down economic activity.

Key entitiesBank of America Federal Reserve

The Story

What 2 sources agree on, dispute, and miss

What sources agree on

Bank of America (BofA) predicts multiple Federal Reserve rate hikes this year
BofA's economists previously expected the Fed to keep rates on hold
The reason for the revised prediction is worsening inflation

Key claims3 agreed

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Bank of America expects three Fed rate hikes this year

agreed·cnbc

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BofA's economists reversed their position held as recently as last week

agreed·cnbc

✓

Inflation is getting 'unambiguously worse'

agreed·cnbc

The Story

Analyzing sources…

Source Diversity

Low (19/100)

2 sources— more sources would strengthen this score15/33

Spectrum spread— 1/5 buckets covered0/33

Far L

Left2

Left (2)

Yahoocnbc

Center

Right

Far R

Geographic diversity— 1 region4/34

US2

ℹAll sources from US region

ℹOnly 2 sources cover this story

Sources

Showing 2 of 2 sources

cnbcMostly Factual49d ago

Bank of America expects three Fed hikes this year, says inflation is getting 'unambiguously worse'

The bank's economists reversed their position held as recently as last week that the central bank would stay on hold this year

Read full article →

YahooMostly Factual49d ago

The Fed is fed up with inflation and will bring down the hammer with a series of rate hikes this year, reversing earlier cuts, BofA says

Read full article →

Coverage Timeline

First report: cnbc · 22 Jun, 16:09|Full coverage: 2 · 8m|Window: 8m

Left-leaningCenterRight-leaning

cnbc22 Jun, 16:09First to report

Bank of America expects three Fed hikes this year, says inflation is getting 'unambiguously worse'

Yahoo22 Jun, 16:16Latest update

The Fed is fed up with inflation and will bring down the hammer with a series of rate hikes this year, reversing earlier cuts, BofA says

Story evolution

The narrative shifted from an expectation of stable interest rates to a prediction of aggressive rate hikes, driven by Bank of America's change in economic outlook.

Initial StancePrior to June 22nd

Bank of America economists previously expected the Federal Reserve to keep interest rates on hold for the year.

Revised PredictionJune 22nd

Bank of America reversed its position, now predicting multiple Fed rate hikes due to worsening inflation.

PERSPECTA

PERSPECTA

Bank of America Predicts Multiple Fed Rate Hikes Amid Worsening Inflation

Why this matters

The Story

What sources agree on

Key claims3 agreed

The Story

Source Diversity

Source Diversity

Sources

Bank of America expects three Fed hikes this year, says inflation is getting 'unambiguously worse'

The Fed is fed up with inflation and will bring down the hammer with a series of rate hikes this year, reversing earlier cuts, BofA says

Coverage Timeline

Bank of America expects three Fed hikes this year, says inflation is getting 'unambiguously worse'

The Fed is fed up with inflation and will bring down the hammer with a series of rate hikes this year, reversing earlier cuts, BofA says

Story evolution

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PERSPECTA

Why this matters

Story evolution

The Story

What sources agree on

Key claims3 agreed