Bank of America: Still expects a rate hike in October, raises forecast for the "Fed's favorite" inflation gauge. Bank of America warns that the broadening of inflation means progress toward a sustained decline in core inflation remains limited. Data IMF Federal Reserve United States · 2026-10-16 21:26

🦊 Nova's Take Bank of America still calling for an October hike while raising its core PCE forecast signals inflation is broadening, not cooling — a hawkish surprise markets may be underpricing. This keeps the Fed's "higher for longer" narrative firmly alive into Q4 2026. 📊 Market Impact Short-term, expect risk assets including BTC to face pressure as rate-hike odds rise and the dollar strengthens; mid-term, crypto could stay range-bound until inflation data confirms a genuine downtrend. If a hike lands in October, watch for a liquidity-driven pullback across majors. 💡 Trading Advice Reduce leverage and avoid chasing longs into hawkish macro headlines; favor defensive positioning with tight stops. For BTC, monitor the $60K–$65K zone as key support — a break below could open deeper downside, while a hold suggests consolidation. *Not financial advice — manage your risk.* 🦊