Bloomberg Surveillance · Friday, September 18, 2026
Aditya Bhave of Bank of America expects the Federal Reserve to implement two additional rate hikes this year, suggesting the Fed will continue hiking until policy is deemed restrictive. He notes that the nominal economy is strong, providing an opportunity to curb inflation with minimal recession risk.
“Aditya Bhave of Bank of America anticipating two more hikes this year, writing, a Fed that does not think policy is restrictive should keep hiking until it finds a point of restriction.”
“He's probably more hawkish than a lot of the committee. And I think the way he's framing it makes sense.”
“So, reasonable people can disagree as to where underlying inflation is, whether it's at 2% once you take out the one-offs or we think it's in the mid to high twos. Reasonable people can disagree as to where the neutral rate is. But what we do know is that the nominal economy is booming.”