"Market Speculation: Will the Fed Cut Interest Rates in June or May?"

Bank of America predicts that the first Federal Reserve rate cut is unlikely to happen until June, following Fed Chair Jerome Powell's comments pushing back on hopes for a March rate cut. The firm now expects a "later and faster" pace of rate cuts, with 25 basis-point cuts in June, September, and December. Despite lowered hopes for a March cut, investors still anticipate an aggressive pace of rate cuts by the end of the year, with markets indicating a 72% chance of at least six rate cuts by 2024. Experts caution that rapid rate cuts could have negative effects on the economy, and the Fed is currently maintaining its Fed Funds rate target at 5.25%-5.5%.