Bosan in the Nordic region: expects the Fed to cut interest rates by 25bp tonight, which opens the door to a significant rate cut.

On September 18, Jinshi Data News, Nordea Bank of Sweden looked ahead to the Fed's interest rate decision, saying that the market is still not sure about the magnitude of the Fed's first rate cut. The bank expects the Fed to lean towards a 25 basis point cut, but is expected to suggest that this is just the first step in a series of rate cuts. The bank expects Fed members to predict two rate cuts at the November and December meetings, each by 25 basis points, and another 100 basis points cut next year, totaling 175 basis points. The bank said, "If our forecast is correct, then the Fed's performance in the next year will be significantly different from market expectations, which could lead to disappointing results." However, the message from Fed Chairman Powell will be that the Fed will take action as needed to support a soft landing, opening the door to more frequent and larger rate cuts.