The Bank of America (BofA) recently added one more rate hike in its expectations from the Federal Reserve (Fed).

The investment bank cites the lack of a quick US economic slowdown, as most expected, as the key catalyst for expecting the third rate lift from the Fed during 2023.

Resurgent inflation and solid employment gains are other catalysts that helped BofA to signal the hawkish move.

It should be noted that the BofA sees the peak for Fed funds at 5.25 - 5.5% and a pause in the rate hike trajectory during July 2023 Federal Open Market Committee (FOMC) Meeting.

More importantly, the US bank sees the first rate cut in March of 2024.

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