Market likely to take cues from size of expected Fed rate cut: BofA

Morgan Stanley Comments on FOMC Action

Morgan Stanley Comments on FOMC Action

The analyst comments "The press conference solidified our views that a string of 25bp cuts from here is the best forecast. The Fed still sees the economy as healthy and labor market as solid, but risks to inflation have come down while risks to the labor market have risen. To show their commitment to not falling behind the curve and confidence in inflation's progress, Powell asserted a large first move was warranted. Powell has stressed and proven with this rate cut that the FOMC is willing to move gradually or make bigger moves... More

ING Comments on FOMC Action

SPDR S&P 500 ETF Trust (NYSE: SPY)

The analyst comments "There was a sense in economist circles that the majority of Fed officials would be reluctant to take such bold action in an environment where the economy is growing at a 2.5-3% rate, equities are at an all-time high, inflation is above target and unemployment is low at just 4.2%. With no... More

TD Cowen Comments on FOMC Action

TD Cowen Comments on FOMC Action

The analyst comments "Federal Reserve Chair Jerome Powell held a press conference today at 2:30 PM ET following the FOMC meeting. We highlight his financial policy comments: Asked about Basel 3 Endgame, Powell said he supports the changes to the capital regime that Fed Vice Chair Michael Barr previewed last week. He emphasized that this is not the final word as the regulators will assess the comments before finalizing the rule in the first half of next year. He also said this is an interagency effort. Powell said there... More

Current CME FedWatch Shows 59% for 475-500bps, 41% for 500-525bps

Current CME FedWatch Shows 59% for 475-500bps, 41% for 500-525bps

Current CME FedWatch Shows 61% for 475-500bps, 39% for 500-525bps

Current FedWatch Shows 61% for 475-500bps, 39% for 500-525bps

When the Fed cuts, buy these groups of stocks

As the Federal Reserve is expected to cut rates on September 18, Evercore ISI analysts identified key stock groups that could outperform during the easing cycle.

According to their note, the High Buyback factor has been a consistent winner in all Fed cut cycles since 1990, regardless of whether the cuts are prompted by a soft or hard landing.

The analysts... More

What if the Fed goes 50? BofA weighs in

Bank of America analysts weighed in on the potential impact if the Federal Reserve opts for a 50bps rate cut, highlighting how it could lead to significant rate repricing.

According to BofA, "today's decision will be a surprise either way" as the market currently prices in roughly equal odds of a 25 or 50bps cut.

The analysts stress that the market's reaction will depend on two main... More