Bank of America: Fed Unlikely to Cut Rates This Year, U.S. Economy Not Expected to Enter Recession

According to a report by Jinse Finance, Bank of America predicts that despite market expectations for rate cuts, the U.S. economy will avoid a recession in 2025 and the Federal Reserve will not cut rates this year. The bank points out that robust consumer spending and rising goods inflation indicate continued economic resilience, and notes that June retail sales data exceeded expectations. Bank of America warns that politically motivated rate cuts could undermine the stability of inflation expectations and increase credit risk. Looking ahead, the bank expects a slight increase in unemployment claims, stable housing data, and a possible 11% decline in durable goods orders to be released on Friday.