TechFlow news, on August 9, according to Jinshi Data, most economists surveyed expect the Federal Reserve to cut interest rates by only 25 basis points in September, contrary to calls from some major Wall Street banks for a larger rate cut.
Among economists surveyed by foreign media, nearly four out of five predict a 25-basis-point rate cut at the Fed's September meeting, while most of the remaining economists forecast a larger reduction. The median estimate indicates only a 10% chance of an emergency rate adjustment before the September meeting.
After last week's weaker-than-expected employment report, some major Wall Street banks, including JPMorgan Chase and Citigroup, now predict a 50-basis-point rate hike by the Fed next month. Futures investors are pricing in a total of 100 basis points in rate cuts by year-end, starting with a 50-basis-point cut next month. However, the consensus among economists is that the Fed will adjust rates by 25 basis points at each meeting in September, November, December, and during the first quarter of next year.
