A memo was released last Friday from Bank of America's Office of Strategy on interest decisions by the Fed and also the European Central Bank
The memo says markets have pre-empted their forecast of five rate cuts next year by the U.S. Federal and more for the European Central in six cuts, with the BoA saying those expectations need to be loosened, especially for the U.S. Federalists, for several reasons.
Core inflation remains high and more stable than major inflation
The risk of high or steady inflation as early as 2024 as the underlying effects of energy prices fade.
In Europe, at the current rate, declining euro zone inflation could support interest rate cuts starting next March.
