Factbox-Major brokerages expect 25 bps of Fed rate cuts in November

(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