FILE PHOTO: A jogger runs past the Federal Reserve building in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo
Major brokerages expect the U.S. Federal Reserve to lower interest rates by 25 basis points at the end of its two-day monetary policy meeting that starts on Tuesday, even as financial markets price in a good chance of policymakers starting the easing cycle with an outsized rate reduction.
Interest rate futures show a 65% chance of the Fed reducing rates by 50 bps on Wednesday, compared with 35% odds of a 25 bps cut, according to data on the CME's FedWatch tool.
Last week, a Reuters poll found that a majority of 101 economists expected the Fed to cut rates by 25 bps at the meeting, while only nine expected a half-percentage-point cut at the conclusion of the two-day Federal Open Market Committee (FOMC) meeting.
Here are the latest forecasts from major brokerages ahead of the Fed's decision due on Wednesday: - Reuters
