FED CUTS STILL ON THE TABLE, SAYS BOFA Bank of America maintains its call for two Fed rate cuts in 2026, arguing the central bank will look past supply-driven inflation, weak wage pressure, and rising political influence. Economist Aditya Bhave noted recent revisions show slightly slower growth and higher inflation, but not enough to change the outlook: cuts are still expected this year. BofA adds that by September, incoming Fed Chair Kevin Warsh could have enough evidence of cooling inflation to support easing—though risks still lean toward no cuts. Recent Fed minutes highlight a cautious stance: some officials have delayed expected cuts or even floated hikes, while many still see eventual rate reductions as appropriate. On consumers, spending is weakening. Real spending rose just 0.1% in February, with a modest 0.8% annualized pace over three months. Meanwhile, inflation (PCE) ran at 4.1%, and higher energy prices may continue to squeeze demand.(*Walter Bloomberg)