BofA Says Investors Back Fed’s Credibility With Rate-Cut Timing
FacebookXLinkedInEmailLinkGiftExpandMichael Hartnett, chief investment strategist of Bank of America Corp.Photographer: Alessia Pierdomenico/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Sagarika JaisinghaniSeptember 12, 2025 at 8:05 AM UTCBookmarkSave
Financial markets are betting the Federal Reserve will still be “ahead of the curve” when it starts lowering borrowing costs, according to Bank of America Corp.’s Michael Hartnett.
The strategist pointed to a rally in banks and interest-rate sensitive stocks as well as a drop in investment-grade credit spreads, which suggests investors are “saying the Fed can cut with credibility and is cutting into US growth re-acceleration,” he said.
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