I had this earlier from Bank of America on their Federal Open Market Committee (FOMC) outlook:
With high inflation sticky, BoA argue the risk is for further Fed rate hikes:
- “We remain bearish; still think biggest ‘pain trade’ next 12 months Fed funds 6% not 3%,”
BoA add that investors have become too bullish and characterize January – March as
- Q1 recession fear
and April to June as
- Q2 Goldilocks greed
Say on narrow breadth,
- S&P breaking out bull market bubbly (though ex-Magnificent 7 up more sober 1% YTD)
And, the
- “Fed ain’t done with hikes
- … we stick with ‘sell the last rate hike’ call,”