Deutsche Bank expect 3 Fed rate cuts in 2024. BoA says just 1

The Federal Open Market Committee (FOMC) meets on the 30th and 31st:

  • Statement due at 1400 ET (1800 GMT)
  • Fed Chair Powell’s press conference is in half an hour.

Deutsche Bank expects nothing at this week’s meeting:

  • First 25bp cut in September
  • This was followed by a 25 basis point cut in November.
  • Then another 25 basis point cut in December.
  • Then it stopped until September 2025.

“We believe markets have returned to being overly optimistic about the next interest rate cycle,” Bank of America says.

  • Bank of America says strong US economic growth means FOMC ‘can afford to wait’

previously:

  • Morgan Stanley says FOMC statement this week will lay the groundwork for three cuts this year
  • Fed policy shift ‘on the horizon’, says UBS
  • Timoraus: Fed rate cut unlikely on Wednesday but officials wary of waiting much longer

This article was written by Eamonn Sheridan on www.forexlive.com.

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