Bank of America expects the Federal Reserve to stop raising interest rates in September

Bank of America expected that the Federal Reserve will halt its tight monetary policy in September, if there is a decline in inflation and an economic deterioration.

The bank said the pause in September would leave the interest rate in the range of 1.75% to 2%.

He added that there is a noticeable change in the statements of some Fed officials who suggest reducing the rate of interest rate hike or stopping later this year.

And the minutes of the reserve meeting for the month of May, Wednesday, showed an agreement among its members to raise interest rates by 0.5% in the next two meetings in June and July.

Not only did policy makers see the need to raise benchmark interest rates by 50 basis points, but they also said that similar increases are likely to be necessary in the next several meetings.

They further noted that policy may have to move beyond a “neutral” position in which it is neither supportive nor restrictive of growth, an important consideration for central bankers that could reverberate through the economy.