Golden Ten Compilation: Investment Banks Look ahead to the Fed's Interest Rate Decision, Indicating a Slowing Pace of Rate Cuts or the Central Theme of the Next Meeting (Part 1)

GoldenOctober2024
  1. Dutch Bank: expected to cut interest rates by 25 basis points, but compared to September, the dot plot may show a hawkish turn. 2. Bank of Canada: expected to cut interest rates by 25 basis points, the latest dot plot from the Fed will show only two rate cuts in 2025. 3. Pantheon Macroeconomics: expected to unanimously agree to cut interest rates, given that inflation stubbornly remains above the target, pausing the rate cut will be the Fed’s default option at the January meeting. 4. Bank of America: expected to cut interest rates by 25 basis points, Powell is expected to hint at a slower pace of rate cuts or a pause in January. The dot plot is expected to show three rate cuts next year. 5. BNP Paribas: expects the Fed to adopt a hawkish rate cut policy, which may open the door to pausing further rate cuts, but the duration of the pause is uncertain. 6. U.S. Bank: expected to cut interest rates by 25 basis points, then cut rates once every other meeting (in March, June, and September), keeping the interest rate at 3.50%-3.7%. 7. ING: expected to cut interest rates by 25 basis points, with the focus on whether there will be a rate cut skip in January and the related explanation. The Fed is expected to signal only three rate cuts in 2025. 8. ANZ Bank: expected to cut interest rates by 25 basis points, expected to implement three 25 basis point rate cuts in 2025, the dot plot may be more cautious than in September, and the median forecast may be revised upward. 9. French Foreign Trade Bank: expected to cut interest rates by 25 basis points, may pause rate cuts in January, implying a slowdown in the pace of rate cuts, and inflation, economic rise expectations and next year’s interest rate expectations should all be raised. 10. Natixis: expected to cut interest rates by 25 basis points, implying a slower pace of rate cuts than expected, inflation and economic rise expectations may be raised, and the expected number of rate cuts should be significantly reduced.
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