Bank of America, Goldman Sachs, and JPMorgan Chase Look Ahead to the Federal Reserve Meeting
4 hours ago
October 30th: Bank of America, Goldman Sachs, and JPMorgan presented their anticipations regarding Powell and the Fed meeting.
Bank of America's perspective on Powell and the Fed meeting: Given the scarcity of official data and the disparity between the labor market and consumer data, Powell is unlikely to offer additional economic guidance following this meeting. The statement might suggest a "robust" rebound in economic activity. Potential dissents: Milan (advocating a 50-basis-point rate cut) or Goolsbee/Schmidt's hawkish dissents. Quantitative tightening will come to an immediate halt. Powell's press conference might center around the divergence between consumer and labor market data, and the market response will hinge on his interpretation of the strong consumer performance. Anticipated future rate cuts: October, June, September, and December 2026.
Goldman Sachs on the Federal Open Market Committee: The market's attention might be focused on the degree to which the Federal Open Market Committee (FOMC) deems its policy to be approaching a neutral level, with quantitative tightening (QT) being of great significance. Quantitative tightening is highly likely to end during this meeting. Future rate cut plan: 25-basis-point cuts in October and December, with two more cuts in 2026, aiming for a target rate range of 3% to 3.25%.
JPMorgan on the Federal Open Market Committee: The market generally anticipates a rate cut, with even the more hawkish Fed officials not opposing market expectations. The statement is expected to remain largely unaltered—economic activity remains solid but job growth is decelerating, and inflation remains elevated. Milan might dissent against a 50-basis-point rate cut; quantitative tightening will end promptly. Powell will define accommodative policy as risk management and will not offer guidance on the December policy direction. Future rate cut plan: 25-basis-point cuts in October, December, and January.
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