"Powell's Speech and Economic Data: Impact on Rates, GDP, Inflation, and Stocks"

Wall Street analysts are revising their expectations for interest rate hikes by the Federal Reserve in 2023, with Bank of America predicting two 25 basis point rate hikes, resulting in a terminal range of 5.50% to 5.75%. This revision is based on Federal Reserve Chair Jerome Powell's comments indicating a commitment to achieving a 2% inflation target, even at the risk of a potential recession. Bank of America also anticipates significant upward revisions to US GDP, with the third estimate of the second quarter GDP expected to be revised higher to 1.8% quarter-on-quarter seasonally adjusted annual rate.