On September 16, Deutsche Bank market strategist Jim Reid predicted that the size of the Federal Reserve’s rate cut this week will set the tone for overall rate cuts in 2024. According to Reid, a 25-basis-point cut on Wednesday would indicate a total 75-basis-point reduction for the year, while a 50-basis-point cut would suggest the Fed might aim for a 100-basis-point reduction by year-end.
Market uncertainty remains high, with Refinitiv data indicating a 59% chance of a 50-basis-point cut and a 41% chance of a 25-basis-point cut, highlighting the unpredictability of the Fed’s decision.
