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Bank of America, Goldman Sachs, and JPMorgan Preview the Federal Reserve Meeting

Bank of America, Goldman Sachs, and JPMorgan Preview the Federal Reserve Meeting

BlockBeatsBlockBeats2025/10/29 18:17
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BlockBeats News, October 30, Bank of America, Goldman Sachs, and JPMorgan shared their forward-looking views on Powell and the Federal Reserve meeting.


Bank of America's view on Powell and the Federal Reserve meeting:

Due to limited official data and a mismatch between labor market and consumer data, Powell is unlikely to provide further economic guidance after this meeting. The statement may indicate a "robust" rebound in economic activity. Possible dissent: Milan (suggesting a 50 basis point rate cut) or hawkish dissent from Goolsbee/Schmid. Quantitative tightening will end immediately. Powell's press conference may focus on the divergence between consumer and labor market data, and market reaction will depend on his interpretation of strong consumer performance. Expected future rate cut timing: October, June, September, and December 2026.

Goldman Sachs' comments on the Federal Open Market Committee:

The market's focus may be on the extent to which the Federal Open Market Committee (FOMC) sees its policy as approaching a neutral level, with quantitative tightening (QT) being crucial. It is highly likely that QT will end at this meeting. Future rate cut plan: 25 basis point cuts in both October and December, two more cuts in 2026, with a target rate range of 3% to 3.25%.


JPMorgan on the Federal Open Market Committee:

The market generally expects rate cuts, and even hawkish Federal Reserve officials have not challenged market expectations. The statement is expected to remain largely unchanged—economic activity remains robust, but job growth is slowing and inflation remains high. Milan may oppose a 50 basis point rate cut; quantitative tightening policy will end immediately. Powell will define easing policy as risk management and will not provide guidance on policy direction for December. Future rate cut plan: 25 basis point cuts in October, December, and January.

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