Bank of New York Mellon: The market generally expects the Federal Reserve to cut interest rates, with voting disagreements and the dot plot being key factors

According to Jinshi reports, market pricing shows that the probability of the Federal Reserve lowering interest rates by 25 basis points on Wednesday is close to 90%. Analysts at Bank of New York Mellon stated that investors should pay attention to the guidance brought by voting discrepancies and noted that there may be disagreements within the committee regarding the expected magnitude of rate cuts.

In addition, the Federal Reserve will release a new interest rate path forecast (i.e., the dot plot) as part of the quarterly Economic Projections Summary. Analysts added that the Federal Reserve may announce its readiness to provide liquidity support to the funding markets by the end of the year and into 2026.