Bank of America Projects Fed to Cut Interest Rates Twice This Year
Analysts at Bank of America now project the Federal Reserve to cut interest rates twice this year, following a disappointing August jobs report. The firm projects a rate cut to come this month and in September, suggesting an additional 75 basis points of easing. “The shift in our view is motivated by both the softer labor data and Powell’s reaction function, as stated at Jackson Hole,” BofA wrote in a Friday note. JUST IN: Bank of America now projects the Federal Reserve to cut interest rates twice this year. pic.twitter.com/9z6cULLaiQ — Watcher.Guru (@WatcherGuru) September 5, 2025 Friday’s jobs report was disappointing, as forecasts were not met. US unemployment rates rose in August 2025 to 4.3%, their highest levels since October 2021. Additionally, only 22,000 new jobs were added to the economy last month, far below forecasts. Economists had expected the report to show 75,000 jobs were created in August, with the unemployment rate forecast to rise to 4...