Bank of America warns the Fed lacks sufficient grounds for a September rate cut as inflation remains above target

According to ChainCatcher, citing Jintou News, Bank of America stated in its latest research report that the Federal Reserve should resist the urge to cut interest rates at the September policy meeting, as recent economic data does not support an early start to an easing cycle. The bank emphasized that policymakers in favor of rate cuts are underestimating the impact of labor supply shocks and the persistence of inflation, with the current inflation rate still above the Fed’s 2% target. The report warns that the latest tariff increases could cause a more severe and lasting impact on prices.