JPMorgan Chase US Chief Economist Michael Feroli said he expects the Fed to cut 25 basis points next week.
Ferroli noted that while some members wanted a bigger rate cut, none of them preferred to change the changed rate. He also said the Fed’s dot plot projection is expected to project another rate reduction after 2025.
Meanwhile, the likelihood of US government closures this year rose to 54%, a month’s highest, according to Calci’s data from the forecast market. Senate majority leader Chuck Schumer warned that Democrats are ready to drain government funds if Republicans refuse to accept medical bills.
Meanwhile, TD securities strategists argued that while the Fed cut interest rates by 25 basis points, the dollar could be valued in the short term if it provided a cautious forward-looking message. The strategist said the market is priced for consecutive interest rate cuts, but the Fed may limit these expectations by highlighting inflation risk. Federal Reserve Chair Jerome Powell noted that rate cuts are likely to be emphasized that data will be closely monitored.
*This is not investment advice.