Velis expects US Federal Reserve chair Jerome Powell to sound a “very cautious note” alongside the announcement. Given the uncertainties ahead, the Summary of Economic Projections (SEP) due alongside the rate announcement will likely reflect “wide differences of opinion” on the FOMC, says Velis.
John Velis, BNY’s Americas macro strategist, expects the US Federal Open Market Committee (FOMC) to lower the Federal Funds Rate by 25 basis points (bps) on Dec 18 (Dec 19 Singapore time).
In addition, this is likely to be the “last cut for while — if not for good”, says Velis in a Dec 17 note, as the inflation and economic policy outlook are both “murky” going into 2025.
