Bank of America stock faces larger Fed hike risk after hot CPI
Published on 11/12/2026 at 13:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSInflation raises December rate risk
- Bank of America still expects a 25-basis-point Federal Reserve increase in December.
- The bank says a 50-basis-point move is now possible after hotter October inflation.
- Bank of America sees a rising risk of another increase in January rather than March.
Bank of America has raised the risk of a larger Federal Reserve rate increase after U.S. consumer prices came in hotter than expected in October. Yahoo Finance, citing Investing.com, reported the bank's assessment on Wednesday, November 11, 2026.
Bank keeps quarter-point base case
Headline consumer prices rose 0.4 percent in October, while core consumer prices excluding food and energy increased 0.3 percent. Both readings added to evidence that inflation pressures remain firm after a third consecutive month of stronger core inflation.
Bank of America said the data all but lock in a Federal Reserve increase at the December meeting and open the door to a 50-basis-point move after hawkish comments from Governor Christopher Waller. The bank nevertheless kept its base case for a 25-basis-point increase.
The bank also raised its tracking estimate for annual core personal consumption expenditures inflation to 3.3 percent. It said a growing share of price categories was running above historical averages, with core goods prices rising 0.2 percent and core services prices advancing 0.3 percent in October.
January risk enters the outlook
Bank of America said goods and services inflation were both moving in the wrong direction. It described the Federal Reserve's decision to hold rates in October as a potential policy mistake and said the risk of another increase in January was rising relative to a move in March.
Bank of America stock traded at 45.89 euros on Lang & Schwarz at 13:31 CET on Thursday, November 12, 2026.
Bank of America at a glance
- Company: Bank of America Corporation
- ISIN: US0605051046
- Ticker: BAC
- Lang & Schwarz quote: 45.89 euros on November 12, 2026 at 13:31 CET
The broader U.S. market context remains tied to the Federal Reserve's next policy decision, with the S&P 500 providing the relevant market benchmark.
The Federal Reserve's next policy meeting is scheduled for December 8-9, 2026. November consumer-price data are due on December 10, after that meeting, leaving the October report as the last CPI reading available before the decision. More news and analyses on Bank of America stock.
