BofA Expects Brief Fed October Press Conference, No Q&A

BlockBeats, October 27 — Bank of America expects Chair Powell's October press conference to follow September's shortened format, running roughly 30 minutes and possibly dropping the Q&A session entirely, as the Fed's rate meeting approaches. Should the Fed raise rates, BofA sees relatively little communication pressure on Walsh: he would need only to stress that inflation remains high and broad-based, that financial conditions are not yet tight enough, and that the economy and labor market stay strong. His aim would be to avoid sounding overly hawkish and to keep hikes from over-tightening financial conditions. A decision to stand pat would put Walsh on the defensive over the Fed's credibility. With September inflation data running hot, even an argument built on trends rather than a single reading would struggle to quiet charges of complacency — a similar trend preceded the September hike. If Walsh declines to signal a quarterly tightening pace that locks in a December increase, markets could again face curve distortion and steepening, a softer dollar and selling in risk assets. BofA holds to its call for Fed hikes in December 2026 and March 2027, and cautions that if inflation proves stickier than expected in the first half of 2027, further increases cannot be ruled out.