Insight
Improving labor data and inflation remaining above target are key factors cited by Bank of America for their hawkish rate hike prediction.
Will the Fed really hike rates 3 times in 2026, per Bank of America?
Summary
Bank of America forecasts three Fed rate hikes in 2026, a move the market views as aggressive. The analysis hinges on improving labor data and persistent inflation, with the Iran conflict ending removing a key factor for hawkishness.
Key takeaway