Bank of America Predicts Economic Growth, No Fed Rate Cuts

Bank of America forecasts a 1.5% economic growth in the U.S. in 2025. CEO Brian Moynihan noted in an earnings call that current market conditions have allowed for positive corporate and retail spending.

He stated:

Bank of America Predicts Economic Growth, No Fed Rate Cuts

Market reactions were positive following the remarks. Industries and corporate leaders welcomed the projection for steady growth, with many attributing it to enhanced economic planning. Moynihan’s comments strengthen the perception of improving economic conditions, alleviating fears of a downturn.

The expectation of stable rates provides a boost to market confidence, particularly among institutional investors who may see this as an opportunity to pursue risk assets. Recent trade agreements and favorable tax legislation have bolstered economic optimism, leading to strategic adjustments among consumers and businesses. Insights from critical voices on cryptocurrency can further explain the dynamics at play.

This has allowed our globally leading research team to continue to predict that the U.S. will not experience an economic recession, and the economy will grow modestly — with year-end growth of around 1.5%, and the Fed will not cut rates before next year. – Brian Moynihan Source

Rising Bitcoin Sentiment Aligns with Economic Stability

Did you know? During soft-landing scenarios, Bitcoin has often mirrored positive sentiment from institutional stability, leading to notable price increases and trading volume surges.

Bitcoin (BTC) currently trades at $119,789.89, with a market cap of $2.38 trillion, as reported by CoinMarketCap. The weekly price increase is 7.98%, while its 90-day performance records a 41.07% rise. The asset’s dominance stands at 62.22% in a resilient market. Insights on market trends highlight its resilience.

The Coincu research team notes institutional sentiment typically favors risk assets during such projections. Historically, DeFi protocols and major cryptocurrencies have shown increased activity. Regulatory anticipation coupled with economic stability supports market growth, enhancing trading volumes and potential innovation in financial technologies. Recent commentary from Paolo Ardoino emphasizes key developments in the industry.