Institutional Preview of the Federal Reserve Rate Decision: Expecting No Change in Interest Rates

Odaily Planet Daily News: The following are institutional forecasts for the Federal Reserve’s interest rate decision, all expecting the Fed to keep rates unchanged this time:

1. Macquarie: Expect rates to remain unchanged, with declining unemployment rates guiding the Fed to hold steady.

2. Goldman Sachs: Expect rates to remain unchanged, with the Fed making only minor adjustments to its monetary policy stance.

3. Nomura Securities: Expect rates to stay unchanged. Policy guidance will continue to indicate that the threshold for future rate cuts will be higher.

4. Oxford Economics: Expect rates to remain unchanged. Economic growth will improve this year, and the Fed will maintain its current policy until June.

5. Citibank: Expect rates to stay unchanged. The truly important signals will come from Powell’s tone, especially how open he is to future rate cuts.

6. Barclays: Expect rates to remain unchanged. The combination of employment and inflation data does not support an immediate rate cut; the FOMC needs time to assess the recent rate cut impacts.

7. Rabobank: Expect rates to stay unchanged. Most committee members believe that the three insurance rate cuts implemented at the end of last year are sufficient.

8. JPMorgan Chase: Expect rates to remain unchanged. The labor market has not deteriorated rapidly, and the recent stabilization of unemployment should ultimately lead the FOMC to agree to hold steady.

9. Morgan Stanley: Expect rates to stay unchanged. The statement is expected to upgrade economic growth expectations from “moderate” to “solid,” and remove language about “increased downside risks to employment.”

10. KBC: Expect rates to remain unchanged. Downside risks to the labor market have eased, and actual GDP growth expectations have increased, both factors reducing the need for a rate cut at the January meeting. (Jin10)