BofA Says Investors Back Fed’s Credibility With Rate-Cut Timing

Michael Hartnett, chief investment strategist of Bank of America Corp. Financial markets are betting the Federal Reserve will still be “ahead of the curve” when it starts lowering borrowing costs, according to Bank of America Corp.’s Michael Hartnett. The strategist pointed to a rally in banks and interest-rate sensitive stocks as well as a drop in investment-grade credit spreads, which suggests investors are “saying the Fed can cut with credibility and is cutting into US growth re-acceleration,” he said ...