BOFA: INFLATION EXPECTATIONS TEST FED CREDIBILITY BofA said 5Y5Y forward inflation expectations have become the key gauge of Fed credibility

BOFA: INFLATION EXPECTATIONS TEST FED CREDIBILITY BofA said 5Y5Y forward inflation expectations have become the key gauge of Fed credibility as markets question whether policymakers will follow through on inflation-fighting rhetoric. The bank said recent gains in forward breakevens reflect weakening confidence in the Fed, though levels remain within historical ranges. BofA still expects the Fed to begin raising rates in September.