ANALISTA Igor Pereira Posted December 4, 2025 ANALISTA Report Share Posted December 4, 2025 The Bank of America (BofA), one of the last major institutions to maintain a cautious vision, has just reverse your projection. As of December 1, the bank now officially expects the Federal Reserve cut interest rates at 25 basis points at the meeting of 9-10 December. By Igor Pereira, Financial Market Analyst, Junior Member WallStreet NYSEBut the news doesn't stop there. BofA predicts more two additional cuts in June and July 2026, pushing terminal rate to 3,00%–3,25%. 1. Why did BofA change his mind?The change from "maintenance" to "cut" is driven by three factors that we have discussed: Labour weakness: Employment indicators cooled, confirming that economic growth is at risk. Dovish signals: Comments of John Williams and other members of the Fed signaled opening for cuts earlier than expected. Fed leadership: The BofA is incorporating the possibility of changes in Fed leadership in 2026, which could incline politics to an even milder bias (dovish). 2. What Does It Mean for Markets?Bonds: Lower yields will boost security prices, especially medium and long term (Treasuries). Mortgage rates can fall, relieving the real estate sector. Growth & Tech: More loose monetary policy is fuel for risk assets. Growth and technology actions, sensitive to discount rates, should benefit. M&A activity can resurface. Banks: Careful here. Interest cuts compress the net profit margins (NIM). Regional banks can take pressure on profits. The forecast of a terminal rate of 3% is perfectly in line with our monetary cycle analysis (where gold tends to reach an intermediate top, in an analysis our sent in the area). The market now has the "green light" of one of the largest banks in the world to safeguard a sustained cycle of cuts. This weakens the dollar and strengthens the high thesis for the Gold and Silver. Prepare for the December meeting. The narrative changed from "maybe" to "probable." Want to take your analysis to the institutional level?This analysis is just the tip of the iceberg. ExpertFX School Premium Members Receive daily insights, premium analysis in-depth and Direct access to our closed group on Telegram, where we discuss the market in real time. Don't operate on noise. Operate based on intelligence. Access your dashboard and become Premium now: https://expertfxschool.com/dashboard Evandro 1 1 Perfect! Thanks! Love it! Haha Confused :/ Oush! Wow! Liked! × 💬 Did you like this content? Your feedback is very important! Liked! Perfect! Thanks! Love it! Haha Confused :/ Oush! Wow! Quote Link to comment Share on other sites More sharing options...
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