Bank of America: If the Fed Hikes Rates in July, It Will Be Unprecedented

Although the market anticipates a low probability of a Fed rate hike in July, Bank of America still expects the Federal Reserve to keep interest rates unchanged. The bank stated that a Fed rate hike in July would be unprecedented: since 1994, the Federal Reserve has never raised rates when the market probability of a hike was below 60%. Bank of America believes that higher oil prices are the main inflation risk and remains bullish on the US dollar.