Major investment banks forecast the Federal Reserve's interest rate decision: generally expected to hold steady, with attention on whether Milan will continue to "cut interest rates"

BlockBeats News, April 30 — Multiple Wall Street institutions released forward-looking views on this Federal Reserve interest rate decision. Most investment banks expect the Fed to keep interest rates unchanged, with the market’s focus on whether Fed Governor Mester will continue to support rate cuts.

Among them, JPMorgan Chase expects the voting outcome to be 11:1, with Mester casting the only dissenting vote and supporting rate cuts; while Mitsubishi UFJ believes Mester may abandon her prior stance on rate cuts.

Goldman Sachs, Morgan Stanley, Société Générale, and other institutions generally expect limited policy changes at this meeting, as the Fed will not publish the Economic Projections Summary (SEP) and the dot plot. The Fed may only acknowledge improvements in employment and a rebound in inflation in its statement, but overall policy guidance is unlikely to be significantly adjusted.

Deutsche Bank believes the Fed may remove wording in the statement about “further adjustments to interest rates,” leaving room for renewed rate hikes in the future. Wells Fargo expects the statement to strengthen language about energy prices lifting inflation and to weaken forward-looking guidance.

In addition, DNB Bank noted that if the Fed releases any dovish easing hints, it could drive U.S. Treasury yields to fall and cause the U.S. dollar to weaken across the board.