

The Federal Reserve's overly cautious approach to the economic outlook could jeopardise the year-end rally in equities, Bank of America strategists have warned. As the S & P 500 nears its all-time high, investors are hoping for the best-case scenario, in which the Fed cuts interest rates as inflation falls while the economy remains resilient. But Michael Harnett, BofA strategist, said that optimism would be tested if the Fed sent a dovish signal at next week's meeting, as it could suggest...
Bank of America strategists have warned that if the Federal Reserve is overly cautious about the economic outlook, it could jeopardise the year-end rally in stocks. The S & P 500 is near its all-time high, and investors expect the Fed to cut interest rates and bring inflation down, but BofA strategist Michael Harnett pointed out that this optimism will be tested if the Federal Reserve sends a dovish signal at next week's meeting, which could suggest that the economy is slowing more than expected...


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