Bank of America Expects an October 28 Fed Rate Hike Against Market Odds
As seen on the 24/7 Wall St. homepage on October 19, 2026.
With traders assigning just a 20% chance to an October 28 hike, BofA's call leaves stocks, bonds and the dollar badly positioned if it lands.
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
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Bank of America is sticking with its call for a Fed rate hike on October 28, against market pricing of just a 20% probability for that outcome.
If BofA is right, assets positioned for a hold face a sudden repricing across stocks, bonds, and the dollar.
BofA's case rests on persistent inflation and strong economic activity, with the bank warning that core PCE inflation moves higher as a result.
With the October 28 meeting days away, the window to reposition is narrow.