Bank of America: Middle East impact is widespread but uneven

April 12, Bank of America's research report on Friday pointed out that the United States has lowered its growth forecast for this year by 50 basis points to 2.3%, of which the direct impact of the war accounts for about three-quarters of the revision; the upward revision of overall inflation is 70 basis points, and it is currently expected that by the end of 2026, the core PCE will be 30 basis points higher than the previous forecast, reaching 3.1%. In the euro area, it shifted its focus to lowering its growth forecast by 60 basis points and raising its inflation forecast by 160 basis points to 3.3%, with core inflation at 2.3%.