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Markets Await Federal Reserve Rate Decision

Sep 18, 2024
  1. Economists' Forecasts
  2. Market Expectations
  3. Experts' Opinions

Ahead of the Federal Reserve meeting, markets weighed the expected rate cuts and how asset prices might react over the coming months.

Economists' Forecasts

Of 114 economist opinions polled by Bloomberg, 104 experts predicted the Federal Reserve would cut funding rates by 25 basis points for the first time in four years, while nine analysts forecasted a 50 bps cut.

Market Expectations

According to QCP Capital, citing Fed Fund Futures pricing, market players saw a 66% chance of a 50 bps decision at the Federal Open Market Committee later on Wednesday, Sept. 18. Prospects of a 25 bps cut stood at 33%.

Experts' Opinions

QCP Capital analysts said the impact of interest rate cuts was unclear at the moment. In a note to investors, QCP stated that the exact monetary policy decision, Dot plot projections, and Fed chair Jerome Powell’s post-FOMC remarks could also influence price movement.

That said, we are confident that volatility will be high in the days following the meeting, as traders readjust their positions over the next few weeks. The regime change could also signal the start of strong macro trends.

The Federal Reserve's potential rate cut could have a significant impact on markets, with experts closely monitoring both domestic and international factors.

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