Moynihan Sees Three Rate Hikes, Predicts Mid-2s Inflation by 2027

Bank of America CEO Brian Moynihan expects the Federal Reserve to hike interest rates three times this year, in September, November, and December. He believes that this will help tame inflation, which he predicts will be in the 'mid-2s' by the end of 2027.

Moynihan said that the current easing of inflationary pressures is due to the subside of tariffs and the war's impact on prices. The Personal Consumption Expenditures (PCE) Index, which is the Federal Reserve's preferred gauge of inflation, rose 3.7% in June on an annualized basis.

Moynihan also stated that he does not expect a hike in interest rates to have an impact on short-term financing for companies building out artificial intelligence infrastructure. He added that the high returns on data center buildouts allow companies to absorb higher rates across long-term bonds.