Bank of America: Fed expected to keep rates steady as uncertainty rises

Federal Reserve is expected to maintain its current policy stance at the March FOMC meeting. US bank securities analysts predict that against the backdrop of rising economic uncertainty, the Fed will adopt a cautious and prudent policy. The Fed may prioritize "patience over panic," evaluating the balance between slowing economic growth and sustained inflation pressure while maintaining stable interest rates. Bank of America analysts predict that the Fed's latest economic forecasts will reflect stagflationary factors, with growth forecasts weakening and inflation expectations being adjusted upwards. Although the market has speculated on the timing of a possible rate cut, policymakers may reiterate a data-driven approach, emphasizing the need to further clarify the economic outlook before making any policy shifts. Investors will closely monitor Fed Chair Powell's speech to understand how the Fed views the evolving risks, including supply disruptions, labor market flexibility, and geopolitical uncertainties.