BofA's Cabana says it's too early to call an end to Fed rate hikes, per report
In brief
- Bank of America's Mark Cabana said it's too early to call the Fed's hiking cycle complete.
- Cabana suggested more than three additional hikes might be necessary, Crypto Briefing reported.
- Fed funds target range stands at 3.75% to 4.00%, according to the report.
- Inflation remains above the Fed's target despite a recent pause, the outlet said.
Cabana's case for more hikes
Is the Fed done? Not yet, going by Cabana's view as reported by Crypto Briefing.
The outlet built his position around one pressure point, which is inflation. It said price growth remains above the Fed's target even after a recent pause in rate adjustments, and that's the backdrop for Cabana's argument that nobody can call the hiking cycle finished yet.
The number of hikes is what stands out. According to Crypto Briefing, Cabana suggested more than three additional hikes might be necessary. That figure comes from the report. It isn't a forecast Bank of America has been cited as publishing, so it's best read as Cabana's view as the outlet relayed it.
Where the policy rate sits
Crypto Briefing put the federal funds rate target at 3.75% to 4.00%, with an effective rate of 3.88% as of early November 2026, according to the same report.
That's the range Cabana thinks may still have room to move higher.
What the market is watching
The report said market activity shows a mixed outlook on whether the Fed will raise rates again within the year. It isn't a one-sided bet (and that split is worth keeping in mind for anyone tracking rate expectations across crypto and macro markets).
Crypto Briefing said market participants will closely monitor upcoming Federal Open Market Committee meetings and statements from key policymakers, including Jerome Powell. It added that economic indicators, specifically inflation rates and employment data, will be pivotal in shaping the Fed's policy direction.
So the next inflation and jobs prints carry a lot of weight in this debate. Until they're out, Cabana's message, as the report tells it, is that the hiking cycle isn't over.
