BlockBeats report, on May 9, the latest forecast from Bank of America indicates that the Federal Reserve will delay rate cuts until the second half of 2027, primarily due to elevated inflation and strong job growth. Previously, Bank of America’s Global Research division had anticipated that the Fed would cut rates once each in September and October this year, based on the expectation that Donald Trump had nominated Kevin Warsh to succeed Powell as Fed Chair, and that Warsh would guide policymakers toward easing monetary policy. However, this outlook has changed in light of evolving economic conditions.
Bank of America economists recently stated, "We no longer expect the Fed to cut rates this year." They also noted that multiple shocks affecting the economy—including the war in Iran, tariffs, and the rise of artificial intelligence—have made predicting interest rate movements more difficult.
The greater the分歧 in the Federal Reserve's interest rate decisions, the more likely it is to maintain rates unchanged for longer. At the most recent FOMC meeting in April 2026, the Fed recorded its largest分歧 since 1992 with an 8-4 vote, making it harder to reach consensus on rate adjustments and instead reinforcing an "inertia" to maintain the status quo—policymakers often pause longer at current levels to await more data that can resolve uncertainty.