BofA’s Cabana: Too soon to declare end of Fed’s rate hikes in 2026

Bank of America's Ben Cabana stated that it is too early to conclude that the Federal Reserve's rate-hiking cycle has ended in 2026, signaling that he does not see sufficient evidence yet to rule out further tightening. The comment pushes back on market expectations that the policy cycle has peaked, a view that would normally be transmitted through the front end of the Treasury curve as traders reprice the path of the policy rate and the rate differential against other major central banks. Bank of America (BAC) is the most directly exposed name, since its net interest income is sensitive to the shape of the yield curve and to deposit repricing, and a higher-for-longer rate path can support margins while raising credit-quality concerns in rate-sensitive loan books. Traders should watch the next core PCE inflation release and the subsequent FOMC communications, particularly any shift in the dot plot or statement language, as the clearest tests of whether the hawkish read-through is durable.

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

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