Bank of America: Rising oil prices may raise the Federal Reserve's inflation forecast

According to Jinshi reports, Bank of America stated that the Federal Reserve will have to deal with another round of supply shocks—rising oil prices. In the economic forecast summary released before the March Federal Reserve meeting, overall and core inflation forecasts may be revised upward. The Bank of America report indicated that if long-term growth expectations are also revised upward, the median long-term interest rate dot plot may shift slightly higher. The bank believes that Powell may acknowledge the risk of stagflation while emphasizing a wait-and-see approach.