Recently, analysts at Bank of America indicated that there is a 50% chance that interest rate cuts will begin in mid-2027, despite cuts had been foreseen for September and October; however, the inflation shot and the strong employment growth at the end of April are changing the outlook.

In the report, the economists mentioned that “we no expect the Federal Reserve to cut interest rates this year”, noting the multiple factors that are currently affecting the country’s economy, such as the high tariff rates, the conflict in the Middle East and the increased energy prices, coupled with the heavy investment that some companies are making in artificial intelligence.

The year-on-year inflation rate is above 3%, very far from the Fed's 2% targets, and according to the report, inflation is not showing signs of wanting to fall below d that percentage. According to BofA Global Research analysts, “underlying inflation is too high and increasing”, which is why they assure that a rate cut by 2027 is more likely.

The Federal Reserve cut interest rates for the time in December of last year, although during that year, the entity felt the pressure on the Executive's part to reduce rates to lower levels; however, they are currently maintained in the range of 3.5% and 3.75 %.

On the other hand, this Friday the Department of Labor released the employment report, which exceeded the expectations of some economists. 115,000 jobs were added in the month of April, showing stability in the market; however, the unemployment rate remained at 4.3%.

Finally, economists at Deutsche Bank also believe that the Fed will keep interest rates in the same range until next year as long as inflation is above its targets.