Bank of America U.S. economist Michael Gapen maintains his forecast that the Federal Reserve will make its first rate cut in December, diverging from the wide majority of analysts and investors who are heavily betting on a September move. During an event call on Wednesday organized by the investment bank, Gapen expressed that the U.S. economy is stabilizing, slowing, but not collapsing. The labor market remains robust, inflation is easing, and supply-side recovery keeps growth within potential. “Disinflation has hit a speed bump in early 2024, but we think inflation will reach the 2% target in 2026,” Gapen stated. Gapen anticipates the Fed to cut rates in December, followed by a pace of 25 basis points each quarter next year. He mentioned that more evidence, particularly ...