SEB: It is expected that the Federal Reserve will cut interest rates by another 25 basis points twice this year.

GoldenOctober2024

Jinshi data, October 10th news, SEB, a Swedish bank in Northern Europe, pointed out that there was a disagreement among the members of the Federal Reserve on the issue of a 50 basis point rate cut in September, but the disagreement on future steps was smaller. There was no sign in the minutes of the meeting that the members hoped to continue to cut interest rates sharply. The members do not want the 50 basis point rate cut in September to be seen as a signal for further rapid rate cuts. The members unanimously believe that over time, policy should gradually shift to a more neutral position, but the minutes of the meeting did not provide a more specific view of the members on the neutral Intrerest Rate. The uncertainty about the current degree of restriction is seen as a reason to support a gradual rate cut. If the data weakens significantly again, the situation may change, but at present, it is most likely that there will be a 25 basis point rate cut at the next two meetings.

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