A headline from Bank of America caught our attention late week saying the Fed is fed up with continued inflation and about to do something about it. Bank of America financial analysts say the Fed has tolerated annual inflation above its 2% target going on five years now. And they forecast the Fed will raise interest rates by a quarter point two times, maybe three times more before the end of the year.
They say the first hike will likely come in September, rates unchanged next month, but then quarter point hikes in October and again in December. Wall Street seems to agree two-year and 10-year Treasury bonds jumping to 13-month highs this week. This is the bottom line report.
There’s a waterfall of money coming out of Wall Street, companies raising trillions of dollars in stock and debt offerings to begin the third quarter.
Audio Reporting by Mark Oppold for Southeast AgNet.