The Federal Reserve's hawkish pivot is reshaping global markets this week, and Bank of America threw gasoline on the fire. BofA flipped its 2026 outlook entirely, now forecasting three rate hikes this year — targeting a fed funds rate of 4.25% to 4.5% that would erase all of 2025's cuts. The Bloomberg Dollar Spot Index hit a seven-month high, touching levels not seen since last November, as traders price in nearly two quarter-point increases by early 2027.

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