BofA now sees fed-funds rate target ultimately reaching 4.75%-5% following Fed’s policy decision

BofA Securities revised its outlook for the fed-funds rate target and now sees it reaching 4.75% to 5% by March, economist Michael Gapen wrote in a note. That’s up from a previous forecast of 4% to 4.25%. The revision was made in response to Wednesday’s release of projections, showing the median participant on the Federal Open Market Committee “is projecting more near-term rate increases than we had expected.” The policy-sensitive 2-year yield TMUBMUSD02Y, 4.039% broke above 4% and carved out another almost 15-year high after Wednesday’s Fed policy decision, while stocks finished sharply lower across the board.