2017.06.2313:48:00UTC+00Bank Of America Lowers U.S. GDP Outlook

Bank of America Merrill Lynch has downgraded its outlook on U.S. gross domestic product in 2018 to 2.1 percent from an earlier forecast of 2.5 percent.

"Hopes for a big fiscal stimulus have faded, prompting us to remove most of the fiscal impulse from our forecast for growth next year," Michelle Meyer, the firm's head of U.S. economics, wrote in a research note. "We do not believe that fiscal easing is a necessary condition for the recovery to persist."

On a more global view, other analysts from Bank of America see low interest rates for the foreseeable time.

"While we think the recent weak inflation readings in the U.S. will only delay the move higher in underlying inflation, for the rest of the world we now see core inflation inching lower rather than higher," economists wrote. "In other words, there is no end in sight for the low-inflation-low-rate environment the global economy has been stuck in since the financial crisis."