The Fed is fed up with inflation and will bring down the hammer with a series of rate hikes this year, reversing earlier cuts, BofA says

(Credit: Brendan SMIALOWSKI / AFP via Getty Images)

The Federal Reserve has tolerated inflation above its 2% target for five years as it navigated a series of shocks, but analysts at Bank of America said that patience is coming to an end.

In a note on Monday, BofA changed its forecast and predicted the Fed will raise rates by a quarter point three times this year, lifting the benchmark rate to 4.25%–4.5% from the current 3.5%–3.75% range.