Bank of America predicts that the Federal Reserve will cut interest rates by 25 basis points in December and will lower rates two more times in 2026

According to Jin Ten, Bank of America Global Research expects the Federal Reserve to cut interest rates by 25 basis points at the December meeting due to a weak labor market and policymakers indicating an early rate cut. The bank also predicts rate cuts of 25 basis points in June and July 2026, with the final rate dropping to a range of 3% - 3.25%. Currently, most major investment banks expect the Federal Reserve to cut rates next week, with only Morgan Stanley and Standard Chartered predicting that rates will remain unchanged.