Sept 17 (Askume) – Major brokerage firms expect the Federal Reserve to cut interest rates by 25 basis points at the end of its two-day monetary policy meeting starting on Tuesday, although financial markets are expecting policymakers to take action sooner.
Interest rate futures indicate a 65% chance of a 50 basis point rate cut by the Fed on Wednesday, while there is a 35% chance of a 25 basis point rate cut, according to data from CME Group’s FedWatch tool.
Last week, a Askume poll found that a majority of 101 economists expected the Fed to cut interest rates by 25 basis points at the meeting, while only nine economists expected a 25 basis point rate cut at the two-day Federal Open Market Committee. It ended with a half percentage point cut.
Here are the latest forecasts from major brokerage firms ahead of Wednesday’s Fed decision:
*UBS Global Research and UBS Global Wealth Management are separate, independent divisions within the UBS Group
*Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo
