Bank of America: Various factors support the Fed’s first cut in December

Golden Finance reported that Bank of America believes that inflation faces upward risks due to strong service industry spending, a still tight labor market and an uncertain fiscal outlook. Even though the PCE inflation gauge has been gradually moving closer to target, the resilience of U.S. economic growth and the positive output gap make any monetary easing look premature. This supports our view that the easing cycle began in December. The impact and uncertainty surrounding the U.S. election may be another reason why the United States does not want to cut interest rates early.