[Bank of America Significantly Revises Expectations: The Federal Reserve Unlikely to Cut Interest Rates Before 2027] According to the latest forecast from Bank of America, the Federal Reserve will delay interest rate cuts until the second half of 2027, primarily due to high inflation levels and strong employment growth. Bank of America Global Research had previously predicted that the Federal Reserve would cut rates once in September and once in October this year, partly based on the expectation that Trump would nominate Kevin Warsh to replace Jerome Powell as the Federal Reserve Chair, and that Warsh would guide policymakers toward adopting measures to ease monetary policy. However, with changes in the economic landscape, this view has shifted. Bank of America economists stated in a report to clients on Friday (May 8), 'We no longer expect the Federal Reserve to cut rates this year.' They also pointed out that multiple factors impacting the economy, including the Iran war, tariffs, and the rise of artificial intelligence, have made predicting interest rate changes more challenging.