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BofA Warns of Warsh’s Fed Raising Rates Above 5% in 2022 Redux

Source: Bloomberg

Monetary PolicyInterest Rates & YieldsAnalyst InsightsInvestor Sentiment & Positioning

Bank of America strategists warned investors to prepare for the Federal Reserve to raise its benchmark policy rate above 5%. The prospect of a higher terminal rate signals more restrictive monetary conditions and poses a potential headwind for risk assets and rate-sensitive sectors.

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