EL7.AI
Central BanksMedium•13 November 2026•
1 min read

Bank of America Forecasts January Fed Hike, Raises Terminal Rate Outlook

Key Facts

1Bank of America revised its monetary policy outlook, now expecting the Federal Reserve to hike interest rates at the January meeting.
2The bank raised its forecast for the terminal federal funds rate amid persistent inflationary pressures.

Bank of America revised its monetary policy outlook, now expecting the Federal Reserve to hike interest rates at the January 2027 meeting. Investing.com reported that the bank also raised its forecast for the terminal federal funds rate amid persistent inflationary pressures.

The revision follows data showing the U.S. monthly inflation rate reached 0.4% on November 10, 2026, exceeding the 0.3% forecast. Additionally, the Super Core CPI recorded a 3.1% annual increase on November 10, 2026, supporting the bank's assessment of persistent inflation risks that prompted the shift in expectations.

Federal Reserve Chair Kevin Warsh is scheduled to deliver a speech on November 16, 2026, which may provide further clarity on the central bank's policy trajectory.