Why this BofA strategist sees no rate cuts in 2025
Friday's job data raises some questions about the Federal Reserve's future decisions on rate cuts throughout this year. Bank of America predicts zero interest rate cuts in 2025. Lauren Sanfilippo, Bank of America senior investment strategist, joins Market Domination to discuss how recent job market strength has shaped BofA's economic forecast. "The jobs report, which actually was a good one, basically priced out cuts for the year, " Sanfilippo explains. "That's sort of how we've pivoted too in terms of our outlook." Sanfilippo also addresses inflation concerns and weighs in on the Federal Reserve’s preemptive cuts, noting a higher tolerance for inflation "shouldn't be that big of a surprise." "I don't want to make too much of this one report, or even next week when we get those inflation prints," she says. "Let's not overreact to one month's data ... we could be in for a little bit stickier-than-expected inflation that's hanging out in that 2 to 3% range." "From a portfolio perspective, the best thing to do now is really get ahead of maybe some rebalancing ... before January 20th," Sanfilippo advises. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Josh Lynch
