21 Leading Financial Institutions Provide Insights on Timing and Magnitude of Federal Reserve’s Interest Rate Cuts
After the Federal Reserve’s decision to maintain interest rates at their current levels, several prominent US banks have revised their interest rate forecasts. Below, we present a synopsis of their latest predictions:
Bank of America anticipates the first interest rate cut to occur in December of 2024, with a total reduction of 25 basis points (BPS) expected over the course of the year. Similarly, Barclays and BNpp foresee the initial reduction happening in September and December, respectively, with a projected 25 basis point decrease in 2024.
Citigroup, on the other hand, foresees an earlier and more substantial cut, predicting the first reduction to be implemented in July 2024, alongside a total reduction of 100 basis points throughout the year. Conversely, Deutsche Bank takes a more conservative stance, projecting a 25 basis point reduction in December 2024.
Experts at Evercore ISI and Goldman Sachs share a common outlook, expecting the first interest rate cut to take place in September 2024, accompanied by a 50 basis point reduction throughout the year. HSBC aligns with this timeline, although it foresees a more modest total reduction of 25 basis points in 2024.
Jefferies and Mizuho adopt a different perspective, suggesting that no rate cuts will occur until 2025. JP Morgan, however, anticipates the initial reduction to be implemented in July 2024, with a projected total reduction of 75 basis points over the course of the year.
LH Meyer predicts a rate cut in December 2024, equivalent to a total reduction of 25 basis points throughout the year, while Morgan Stanley expects a similar reduction to take effect in September 2024, with a total decrease of 75 basis points during the year.
MUFG projects an aggressive strategy, with the first reduction expected in July 2024 and a total reduction of 125 basis points anticipated throughout the year. Nomura, Oxford Economics, TD Securities, and UBS align their forecasts, anticipating a 50 basis point reduction alongside the first cut in September 2024.
RBC predicts a reduction in December 2024, amounting to a total of 25 basis points throughout the year. On the other hand, Societe Generale does not foresee any rate cuts until 2025. Wells Fargo expects the first reduction to occur in September 2024 and predicts a total reduction of 50 basis points within the year.
Please note that this article does not serve as investment advice.