According to Odaily, analysts suggest that the Federal Reserve is expected to reduce interest rates by 25 basis points this week. This prediction aligns with previous statements by Federal Reserve Chair Jerome Powell, who indicated that a reasonable pace for rate cuts would be 25 basis points. Despite a significant decline in October's non-farm payrolls, largely attributed to one-time factors, the overall economic data from the past two months has remained relatively stable.
The market has largely priced in a 25 basis point rate cut for November, with a probability of 97.6%. Additionally, there is a 68.4% chance of another 25 basis point cut in December. Major financial institutions have shared their perspectives on the anticipated rate cuts. Goldman Sachs advocates for consecutive 25 basis point reductions, while JPMorgan Chase maintains that the rate cut is justified. Deutsche Bank believes that the upcoming U.S. elections will not influence the Federal Reserve's decision this week.