Bank of America: Various factors support the Federal Reserve's rate cut in December

ChainCatcher news, according to Jinshi reports, U.S. banks believe that inflation faces upward risks due to strong service sector spending, a still tight labor market, and uncertainty in fiscal prospects. Even though the PCE inflation indicator has been gradually approaching the target, the resilience of U.S. economic growth and the positive output gap make any monetary easing seem premature. This supports our view that the easing cycle will begin in December. The impact and uncertainty surrounding the U.S. elections may be another reason why the U.S. does not wish to cut interest rates prematurely.