📉 Bank of America adjusts its expectations for the U.S. Federal Reserve
After the weak jobs report in August and the rise in unemployment to 4.3%, Bank of America expects the Federal Reserve to cut interest rates twice this year:
✅ First cut: September 2025
✅ Second cut: December 2025
🔎 The bank pointed out that the focus has now shifted to the weakness of the labor market rather than inflation.
⚠️ If the deterioration in jobs continues, we may see an additional cut even before the end of the year, with the possibility of more in 2026.
🏦 Other major banks like Morgan Stanley and Citigroup share the same outlook.