Forecast: Recession may force Fed to cut interest rates


November 30, Fineko/ Bank of America (BofA) expects that the US Central Bank (Fed) will slow down its tight monetary policy next year and sooner or later will start lowering interest rates to revive the declining economy, which, in turn, will reduce the coupon interest rate (yield) of 10-year treasury bonds, ABC.AZ informs with reference to the BofA report.

"The US economy will enter recession in the middle of next year. This will force the Fed to lower interest rates by the end of the year," a BofA spokesman said.

Officials said that, according to their forecasts, the yield on 10-year US treasury bills will begin to decline from 4% in the first quarter of 2023. However, they also said they expect the yield to be around 3.25% by the end of 2023.