BANK OF AMERICA STILL EXPECTS AN OCTOBER FED RATE HIKE

Bank of America maintains its forecast for a Fed rate hike on October 28, despite markets pricing just a 20% probability.

BofA warns that persistent inflation and strong economic activity could push core PCE inflation to 3.4% by year-end.

The key takeaway: BofA believes inflation risks justify further tightening, even as investors increasingly expect the Fed to hold rates steady.