ZeroHedge/Tyler Durden/7-15-2022
“Well, as of today, in addition to sharply lowering its stock targets, BofA is also slashing its 10y Treasury end ’22 forecast from 3.50% to 2.75% and end ’23 forecast from 3.25% to 2.50%. The cuts come as BofA’s economics team yesterday also slashed its forecast to reflect a US recession in 2022 and materially lowered the Fed funds rate path with the terminal Fed funds rate lowered from 4.00-4.25% to 3.25-3.50%, as the BofA economics team now expects 100bp of Fed rate cuts between Sep ’23 and Jun ’24.”
USAGOLD note: That forecast of another Fed u-turn comes from Marc Cabana, the highly respected Fed analyst at Bank of America. When he speaks, says Zero Hedge, investors, the Fed and even his fellow credit guru, Zoltan Pozsar, listen. Says ZH, “[O]nce markets realize that Cabana is once again right, high beta risk assets, currency debasement hedges like gold and bitcoin, and of course commodities will soar limit up as there will be no U-turn from this particular final Fed capitulation.”
