Fed Holds Rates Through January, March Cuts and BofA Forecast Drive Small-Cap Rally

IWMIWM

Professor Jeremy Siegel predicts rotation from large-cap growth into small-cap and value stocks, underpinned by economic resilience and an expected Fed policy shift with rate cuts from March after holding rates in January. Bank of America forecasts U.S. GDP growth beating consensus in 2026, favoring small caps’ outperformance.

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