Nordic Securities: The Federal Reserve is expected to cut interest rates by 25 basis points tonight, opening the door to a substantial rate cut
Odaily Planet Daily Report: Nordea Bank, a Swedish bank, looks ahead to the Federal Reserve's interest rate decision, stating that the market has not yet determined the extent of the Fed's first rate cut. The bank expects the Fed to be inclined to cut rates by 25 basis points, but expects it to hint that this is just the first step in a series of rate cuts. The bank expects the Fed members to forecast two more rate cuts of 25 basis points each in November and December, and another 100 basis points of cuts next year, for a total of 175 basis points of cuts. The bank said: "If our forecast is correct, the Fed's performance over the next year will be very different from market expectations, which could lead to disappointing results." However, the message from Fed Chairman Powell will be that the Fed will take action as needed to support a soft landing, and will open the door to more frequent and larger rate cuts. (Jinshi)
