It is forecast only one more major Wall Street brokerage in the 25-beses-point rate reduced from the Fed this year, while Goldum Sach expects a cut in other Feds like SS S and Morgan Stanley.
Bofa warned that the Fed was at risk of “exaggeration”.
U.S. that began on Wednesday The shutdown of the government has disrupted the release of key economic data that depends on the Fed to evaluate whether the conditions give a warrant to the rate reduction.
The presentation of the closely viewed monthly job report on Friday is delayed due to the government’s closure, leaving investors to interpret alternative indices that point to the cooling labor market and strengthen the rate reduction expectations.
Bofa says the soft trend in labor data is already strong to justify the rate cut, regardless of whether the NFP report is available or before the Fed’s October Catber meeting.
According to the CME Group’s Fedwatch Tool, investors are at 98% probability of reducing 25-base-point rate in October Catber and 90% of the same cut in December.
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