BofA Says Strong US Jobs Report Could Push Markets to Price In Three 2026 Rate Hikes
Forecast Trend Report by Period
Bank of America Securities said a strong June US employment report could lead markets to assign greater odds to three interest-rate hikes in 2026.
Odaily, a cryptocurrency-focused media outlet, reported on June 29 that BofA expects US nonfarm payrolls to increase by 110,000 in June. The firm added that if the jobs report is strong, markets could tilt further toward its existing forecast for three rate hikes in 2026.
BofA said moderating initial jobless claims and a strong ADP private-payrolls reading could support June job growth.
The firm also said a slowdown remains possible. The jump in leisure and hospitality hiring in May may have been driven by the World Cup or Memorial Day, it said. If Memorial Day had the bigger effect, June employment data could slow again.
US labor-market data is a key gauge of the Federal Reserve's rate path. If the labor market stays stronger than expected, concerns over tighter policy could reemerge in risk assets.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.