Is a rate cut next week a done deal? Bank of America’s Hartnett warns that if the Federal Reserve adopts a dovish stance and cuts rates, it could end the Christmas rally in U.S. stocks
Currently, Wall Street generally predicts that the Federal Reserve will cut interest rates by 25 basis points next week. Morgan Stanley, JPMorgan Chase, and Bank of America have all shifted to expecting a rate cut this week. Bank of America strategist Hartnett warned that overly dovish signals of rate cuts could convey misleading information, suggesting that the degree of economic slowdown is greater than the market expects, which could trigger a sell-off in long-term government bonds, subsequently affecting the stock market
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