Bank of America: Expects the Federal Reserve will not cut rates this year, and the U.S. economy will not fall into recession

BlockBeats news, on July 21, Bank of America predicted that despite market expectations for interest rate cuts, the U.S. economy will avoid recession in 2025, and the Federal Reserve will not cut rates this year. The bank pointed out that strong consumer spending and rising goods inflation indicate that the economy remains resilient, and mentioned that June retail sales data exceeded expectations.

Bank of America warned that politically motivated interest rate cuts could undermine the stability of inflation expectations and increase credit risk. Looking ahead, the bank expects a slight increase in unemployment claims, stable housing data, and a potential 11% decline in durable goods orders reported on Friday.