BofA Economist Warns Against Premature Rate Cuts Ahead of Fed Meeting

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Washington, D.C. — July 28, 2025 — As the Federal Reserve prepares for its policy meeting this Wednesday, market watchers are bracing for a familiar message: caution and patience.

Bank of America Securities senior U.S. economist Stephen Juneau weighed in, stating, “I think it’s going to be more of the same… It’s going to be a wait-and-see message. There’s really no rush for the Fed to cut.”

Juneau’s remarks come amid persistent inflation concerns and a resilient labor market, both of which have kept the Fed from pivoting toward rate cuts.

Analysts expect the Federal Open Market Committee (FOMC) to maintain its current stance, emphasizing a data-dependent approach.

Key Highlights:

  • Interest Rates: No immediate cuts expected; Fed likely to hold steady.
  • Inflation Watch: Core inflation remains above target, prompting caution.
  • Economic Outlook: Juneau suggests the Fed will wait for clearer signals before acting.
  • Market Impact: Investors remain focused on Fed commentary for future guidance.

The Fed’s decision will influence borrowing costs, consumer sentiment, and equity markets heading into Q3.

With no major surprises expected, attention will shift to Chair Jerome Powell’s post-meeting remarks, which could offer clues about the Fed’s long-term strategy.

For full coverage and expert analysis, watch the interview on Yahoo Finance.

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