J.P.Morgan and BofA Global Research Forecast U.S. Federal Reserve to Cut Interest Rates by 25 bps in November
Major brokerages like J.P.Morgan and BofA Global Research are predicting a 25 basis points reduction in interest rates by the U.S. Federal Reserve in November. This change comes after the release of strong U.S. nonfarm payrolls data, indicating a robust economy. Other firms such as Goldman Sachs, Barclays, Macquarie, and Deutsche Bank have also maintained their forecasts of a 25 bps cut each in November and December.
Here are the rate cut estimates from major brokerages after the recent jobs report:
- BofA Global Research: 25 bps in November, 25 bps in December, with the Fed Funds Rate at 3.0%-3.25% by the end of 2025.
- Deutsche Bank: 25 bps in November, 25 bps in December, with a Fed Funds Rate of 3.25%-3.50%.
- Barclays: 25 bps in November, 25 bps in December, with a Fed Funds Rate of 3.50%-3.75%.
- Macquarie: 25 bps in November, 25 bps in December, with a Fed Funds Rate of 3.25%-3.50% through June 2025.
- Goldman Sachs: 25 bps in November, 25 bps in December, with a Fed Funds Rate of 3.25%-3.50% through June 2025.
- J.P.Morgan: 25 bps in November, 25 bps in December, with a Fed Funds Rate of 3.0% through September 2025.
- UBS Global Wealth Management: 50 bps in November, 100 bps in December, with a Fed Funds Rate of 3.25%-3.50%.
Before the jobs data, the rate cut estimates from major brokerages were slightly different, with some expecting larger cuts.
In conclusion, these forecasts give insights into the potential future direction of interest rates set by the Federal Reserve. Understanding these predictions can help individuals and businesses make informed decisions about their investments, savings, and financial strategies. It's important to stay updated on these forecasts to adapt to changing market conditions and optimize financial outcomes.