sWhat are some of the analysts saying after the FOMC rate decision:
- Wells Fargo: "On balance, we remain confident that the FOMC will begin reducing the federal funds rate before the year is out. It will be a close call between one and two 25 basis point cuts.
- Morgan Stanley: "We continue to see three cuts this year, starting in September, informed by our core PCE forecasts that reach a 3-month annualized pace of 2.5% ahead of the meeting. Inflation continues to move convincingly lower, and the Fed cuts every meeting through mid-2025"
- Goldman Sachs: "We continue to expect a 1st rate cut in September and a 2nd cut in December...With two better rounds of inflation and data now in hand, we think that if the next three rounds are in a similar range, the leadership is likely to push through a cut in September"
- Bank of America: "Overall , we retain our view for one rate cut this year in December and for gradual easing cycle that ends with the terminal rate of 3.5% – 3.75%"
Former Fed member James Bullard favors a more “Greenspanian” approach that moves away from the idea that the initial move is “very momentous....What I’d advocate for is a technical adjustment that takes on board the idea that inflation is lower today than it was last summer.”
