BofA: Fed Under Warsh Could Raise Rates Above 5%
- —BofA expects 2-year UST yields at 5% versus about 4.7% now
- —Swaps price in three 0.25 percentage point hikes to 4.5–4.75%
- —According to the Taylor rule, the funds rate should be around 5.3%
- —BofA's economist expects two hikes — in October and December
Why it matters: A more aggressive Fed cycle will increase pressure on the crypto market and risk assets, supporting the dollar and yields.
Source: DiarioBitcoin