Interest Rate Forecast by Major Brokerages
(Reuters) – Major brokerages including J.P. Morgan, Barclays, and Goldman Sachs forecast a 25-basis-point interest-rate cut by the U.S. Federal Reserve at its November 6-7 meeting.
The central bank cut interest rates by an oversized 50 basis points at its Sept. 17-18 meeting. Fed Chair Jerome Powell indicated that the reduction aimed to emphasize policymakers' commitment to maintaining a low unemployment rate as inflation eases.
All major brokerages, except Citigroup, anticipate a 25-bps cut during the Fed's December meeting as well.
Rate-Cut Estimates
| Brokerages | Nov | Dec |
|---|---|---|
| BofA Global Research | 25 | 25 |
| Deutsche Bank | 25 | 25 |
| Barclays | 25 | 25 |
| Macquarie | 25 | 25 |
| Goldman Sachs | 25 | 25 |
| J.P. Morgan | 25 | 25 |
| UBS Global Wealth Management | 50 | |
| Citigroup | 25 | 50 |
Note: The 50 bps by UBS could represent either November and December combined, or 50 bps separately for either month.
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