Bank of America Adds January 2027 Hike to Fed Rate Forecast

Bank of America Global Research expects the Federal Reserve to raise rates three times through March 2027, adding a January move that puts projected increases at 75 basis points.

On Nov. 13, the bank research division added a 25-basis-point increase in January 2027 to its outlook, which already included moves in December 2026 and March 2027. Each projected change is a quarter-point, and all three would add up to 75 basis points by March.

The January call extends the bank’s earlier Fed outlook, which included increases in December 2026 and March 2027. The revised schedule places the January increase between those two projections. December 2026 is the first projected move, and March 2027 is the last.

The forecast is Bank of America Global Research’s expectation for Federal Reserve policy, not a rate decision by the central bank.