Bank of America: Expects Federal Reserve to abandon its loose leaning and hints at no interest rate cuts this year Bank of America expects that the Federal Open Market Committee will cancel its loose stance in its statement, and there will be no objections to next week's decision. They expect the Federal Open Market Committee to maintain the policy rate at 3.5% -3.75% at its June meeting. They also predict that the economic forecast summary should show an increase in inflation, a decrease in unemployment rate, and no interest rate cuts this year. A few decision-makers may predict a rate hike. As predicted by other economists, the bank stated that the new chairman Kevin Walsh will not submit a forecast and will lean towards a more lenient stance at the press conference. He will argue that the supply shock is a one-time event, and that the Federal Reserve should be forward-looking in terms of AI induced inflationary pressures. Additionally, the truncated mean personal consumption expenditure price index (PCE) and wage inflation do not appear to be a problem.