Fed could raise interest rates in October, says Bank of America economist

Aditya Bhave, a senior US economist at Bank of America Securities, has suggested that the Federal Reserve might consider raising interest rates during its upcoming October meeting. Speaking on Bloomberg Surveillance, Bhave indicated that monetary policymakers could pivot toward tightening, pushing back against prevailing financial market expectations that largely anticipate rates remaining unchanged.

The forecast highlights potential uncertainty surrounding the central bank's rate trajectory under Federal Reserve Chair Kevin Warsh. Analysts and market participants continue to monitor economic indicators closely for signals on whether persistent inflation or economic strength could prompt unexpected policy action ahead of the fourth quarter.

Sources: Bloomberg