Bank of America: Fed expected to cut rates twice this year

Bank of America economists said in a report that the Federal Reserve is likely to leave interest rates unchanged next week, while expecting two rate cuts this year starting in September. The bank said, "Upcoming data should convince the Fed that the economy is cooling, but it needs more evidence of slowing inflation to cut rates." This forecast coincides with market pricing based on CME data. Meanwhile, the European Central Bank cut rates today as expected, but some analysts sensed a hardening tone in the central bank's communications, suggesting that further rate cuts may not be forthcoming.