Bank of America Maintains Forecast for October Fed Rate Hike

Bank of America analysts continue to anticipate a Federal Reserve interest rate hike in October, despite market sentiment pricing in only a 20% probability. The firm argues that September's inflation data strengthens the case for a rate increase, projecting that core Personal Consumption Expenditures (PCE) could reach 3.4% year-over-year by the end of 2026. The next Federal Reserve interest rate decision is scheduled for October 28.