Bank of America forecasting a June rate cut from the Federal Open Market Committee (FOMC)

Bank of America are forecasting a June rate cut from the Federal Open Market Committee (FOMC), saying they expect that the January topside surprise was a 'blip':CPI report reinforces the Fed’s concern that core services inflation will remain sticky because of a tight labour market. In our view, a March cut is now firmly off the table and the chances of a May cut have significantly reduced. But we remain comfortable with our call for rate cuts to begin in June. While risks are now obviously skewed toward a delay, there will be four more CPI prints before the June decision, which leaves plenty of time to re-establish the disinflation narrative if (as we expect) the January inflation data prove to be a blip rather than the start of a new trend.---The turn around on Wednesday shows there are a lot thinking what BoA are thinking:Forexlive Americas FX news wrap 14 Feb:Mkts rebound from yesterday's move.USD/rates lower.Powell apparently concurs:Did a secret Powell meeting turn around markets yesterday? This article was written by Eamonn Sheridan at www.forexlive.com.