{"id":146806,"date":"2025-01-15T10:30:22","date_gmt":"2025-01-15T08:30:22","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=146806"},"modified":"2025-01-15T03:55:19","modified_gmt":"2025-01-15T01:55:19","slug":"no-rate-cuts-in-sight-bank-of-america-predicts-fed-will-hold-firm-in-2025","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/no-rate-cuts-in-sight-bank-of-america-predicts-fed-will-hold-firm-in-2025\/","title":{"rendered":"No Rate Cuts in Sight: Bank of America Predicts Fed Will Hold Firm in 2025"},"content":{"rendered":"

Despite Wall Street\u2019s hopes, stubborn inflation, a resilient labor market, and growing federal debt make any easing of monetary policy unlikely. Bank of America economist Stephen Juneau predicts<\/a> <\/strong>rates will hold steady, citing steady economic activity and inflation well above the Fed\u2019s 2% target.<\/p>\n

Recent data underscores the challenge. December\u2019s producer price index (PPI) rose<\/a> <\/strong>0.3%, with annual core inflation hitting 3.5%, its highest since early 2023. The consumer price index (CPI) followed suit, signaling persistent price pressures. Meanwhile, the labor market added 256,000 jobs in December, pushing unemployment to just 4.1%, complicating the Fed\u2019s dual mandate of controlling inflation while maintaining full employment.<\/p>\n

Adding to the mix, the federal government\u2019s debt crisis looms large. With a first-quarter deficit of $710.9 billion\u2014a 39% jump from last year\u2014and the national debt surpassing $36 trillion, rising interest costs are straining finances. Treasury yields are climbing, with the 10-year note hitting 4.8%, further increasing borrowing costs.<\/p>\n