One of the most hawkish investment firms on Wall Street might soon revise its estimates and anticipate an earlier rate cut from the Federal Reserve if June's new inflation figures confirm another unmistakable signal of a return towards the 2% target.

Despite recent benign inflation reports,Bank of Americastill maintains its call for rate cuts to begin no earlier than December 2024. This stance, which contrasts sharply with the current market pricing seeing a 76% chance of cuts starting as early as September, may be softened after the upcomingConsumer Price Index (CPI)report on Thursday.

"We expect the June CPI...