Bank of America CEO urges Federal Reserve not to be too hawkish on interest rates

Bank of America CEO Moynihan has urged Federal Reserve policymakers to be measured in how much they cut rates. Moynihan said the Fed moved "too late" to raise borrowing costs in 2022 and now they have to make sure they don't go too far in cutting rates. He expects the Fed to cut rates by another 50 basis points before the end of the year and then four more cuts of 25 basis points each in 2025, when the end point rate will reach 3.25%. In that case, he expects inflation to fall to 2.3% in 2025 and 2026. But Mr. Moynihan said the risk was that "they move too fast or too slowly, and the risk is higher now than it was six months ago."