BofA Global Research moves Fed rate cut forecast to October from December

(Reuters) -Bank of America Global Research on Friday pulled forward its forecast for the next Federal Reserve interest rate cut to October from December, citing signs of a softening labor market.

It remains the only major Wall Street brokerage forecasting just one more 25-basis-point rate cut from the Fed this year, while others such as Goldman Sachs and Morgan Stanley expect cuts at both of the Fed’s upcoming meetings.

BofA warned there is a risk the Fed could “over-ease.”

The U.S. government shutdown, which began on Wednesday, has disrupted the release of key economic data that the Fed relies on to evaluate whether conditions warrant a rate cut.

The release of the closely watched monthly jobs report, originally scheduled for Friday, has been delayed due to the government shutdown, le