Bank of America warns: Dovish Fed rate cuts may impact year-end stock market rally

Mars Finance News, citing Jinshi, reports that Bank of America strategists have warned that if the Federal Reserve takes an overly cautious stance on the economic outlook, it could jeopardize the year-end stock market rally. As the S&P 500 approaches its all-time high, investors are anticipating Fed rate cuts alongside easing inflation. However, Bank of America strategist Michael Hartnett pointed out that if the Fed sends a dovish signal at next week’s meeting, this optimism will be put to the test, possibly indicating that the economic slowdown is worse than expected.