(Reuters) – Major brokerages including J.P.Morgan, Barclays (LON:BARC) and Goldman Sachs have 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 said the reduction was meant to show policymakers’ commitment to sustaining a low unemployment rate now that inflation is easing.
Besides Citigroup (NYSE:C), all major brokerages also continue to see a 25-bps cut at the Fed’s December meeting.
Here are the forecasts from major brokerages:
Rate-cut estimates
(in bps)
Brokerages 2024
Nov Dec
BofA Global 25 25
Research
Deutsche Bank (ETR:DBKGn) 25 25
Barclays 25 25
Macquarie 25 25
Goldman Sachs 25 25
J.P.Morgan 25 25
** UBS Global 50
Wealth
Management
Citigroup 25 50
** 50 bps could be for November and December combined, or just 50 bps each for either November or December