Bank of America Global Research changes its Fed rates call.

"We now expect three 25bp Fed hikes this year, in September, October, and December. This would take the policy rate to 4.25-4.5%. We were skeptical of the need for cuts in 2025," BofA notes.

"Both the data and our updated read of the Fed's reaction function suggest it will reverse those cuts in short order. We think the Fed will stay on hold next year. Inflation is likely to remain sticky, keeping the real policy rate from becoming overly restrictive," BofA adds.