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

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

• statement due at 1400 US Eastern time (1800 GMT)
• Federal Reserve Chair Powell’s press conference follows a half hour later

Deutsche Bank expect nothing at this week’s meeting:

• first 25 basis point cut in September
• followed by a 25 bp cut in November
• and then another 25 bp cut in December
• then a pause until September 2025

Bank of America say so, “We think the markets are back to being overly optimistic about the upcoming rate cycle”

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

Earlier:

• Morgan Stanley says this week’s FOMC statement will lay foundation for 3 cuts this year
• UBS says a Federal Reserve policy pivot is “on the horizon”
• Timiraos: Fed cut unlikely on Wednesday but officials wary of waiting too long

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