Bank of America expects three Fed hikes this year, says inflation is getting 'unambiguously worse'
Bank of America expects the Federal Reserve to raise rates three times in 2026. CEO Brian Moynihan attributes the need for these hikes to an oil price shock. The bank remains bullish on the U.S. dollar and global growth prospects.
What changed
New reports indicate CEO Brian Moynihan rejects recession fears and the bank has raised its global growth outlook.
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Bank of America Forecasts Fed Rate Hikes Amid Inflation Concerns
confidence 90%Bank of America expects the Federal Reserve to raise rates three times in 2026. CEO Brian Moynihan attributes the need for these hikes to an oil price shock. The bank remains bullish on the U.S. dollar and global growth prospects.
What's confirmed:
- Bank of America CEO Brian Moynihan says rate hikes are necessary to combat inflation from an oil price shock.
- The bank expects the Federal Reserve to raise rates three times this year.
Still unconfirmed:
- Bank of America forecasts 110,000 US jobs were added in June.
- Bank of America analysts are bullish on the U.S. dollar for the third quarter.
- Former Fed official Esther George suggests Kevin Warsh may have to raise rates.
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Bank of America Forecasts Three Fed Rate Hikes in 2026
confidence 90%Bank of America economists now expect the Federal Reserve to raise rates three times this year. This shift follows a determination that inflation is getting "unambiguously worse." The bank previously predicted the central bank would hold rates steady.
What's confirmed:
- Bank of America forecasts three Federal Reserve rate hikes in 2026.
- The bank describes inflation as getting "unambiguously worse".
- Bank of America economists previously held a position as recently as last week that the central bank would stay on hold this year.
Still unconfirmed:
- Bank of America predicts no rate cuts until 2028.
- The Federal Reserve is losing patience after the latest round of supply shocks.
- Chair Kevin Warsh has taken a hawkish turn.