Factbox: Most Brokerages Anticipate 50 Basis Points in Rate Cuts from Fed for Remainder of 2024 – Reuters

Most major brokerages anticipate that the U.S. Federal Reserve will implement a total reduction of 50 basis points in interest rates during its meetings in November and December, following a substantial decrease announced in September.

Federal Reserve Chair Jerome Powell referred to the half-percentage-point cut as a "recalibration" in response to the significant drop in inflation over the past year. He emphasized that while the economy remains robust, the central bank aims to proactively address any potential weaknesses in the job market.

Below are the rate cut forecasts from various brokerages following the Fed’s recent decision:

Rate Cut Estimates (in basis points)

• Bank of America: November 75, December 25; 2025 funds rate expected at 2.75%-3%
• Global Research: November 125
• UBS Global Wealth Management: November 50, December 100; 2025 funds rate at 3.25%-3.50%
• Deutsche Bank: November 125, December 25; 2025 funds rate at 3.25%-3.50%
• Barclays: November 75, December 25; 2025 funds rate at 3.50%-3.75%
• Morgan Stanley: November 100, December 25; 2025 funds rate at 3.25%-3.50% (through June 2025)
• Macquarie: November 100, December 25; 2025 funds rate at 3.25%-3.50% (through June 2025)
• Goldman Sachs: November 100, December 25; 2025 funds rate at 3.25%-3.50% (through June 2025)
• Citigroup: November 50, December 25
• J.P. Morgan: November 50, December 25

Here are the forecasts from major brokerages made prior to the Fed’s decision:

Rate Cut Estimates (in basis points)

• Goldman Sachs: September 25, November 25, December 25
• Bank of America Global Research: September 25, November 25, December 25
• UBS Global Wealth Management: September 50, November 25, December 25
• J.P. Morgan: September 50, November 50, December 25
• Wells Fargo: September 50, November 50, December 25
• Nomura: September 25, November 25, December 25
• Deutsche Bank: September 25, November 25, December 25
• Morgan Stanley: September 25, November 25, December 25
• Citigroup: September 25, November 50, December 50
• Investment Institute: September 50, November 25, December 25
• Barclays: September 25, November 25, December 25
• HSBC: September 25, November 25, December 25
• Macquarie: September 25, November 25, December 25

Please note that UBS Global Research and UBS Global Wealth Management operate as separate, independent divisions within UBS Group. Additionally, Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank.