Major Investment Banks Look Ahead to Fed Rate Decision: Widely Expected to Stay Put, Focus on Whether Milan Continues "Rate Cut Path"

BlockBeats News, April 30th. Several Wall Street institutions expressed their forward-looking views on this Fed interest rate decision. Most investment banks expect the Fed to maintain the interest rate, with the market focusing on Fed Governor Milan's stance on future rate cuts.

Among them, JPMorgan Chase expects the voting result to be 11:1, with Milan casting the sole dissenting vote in favor of a rate cut. Meanwhile, MUFG Bank believes Milan may abandon his previous rate cut stance.

Goldman Sachs, Morgan Stanley, Natixis, and other institutions generally expect that this meeting, due to the non-disclosure of the Summary of Economic Projections (SEP) and the dot plot, will result in limited policy changes. The Fed may only acknowledge in its statement the improvement in employment and the rise in inflation, but the overall policy guidance is not expected to be significantly adjusted.

Deutsche Bank, on the other hand, believes the Fed may remove the phrase "further rate adjustments" from its statement to leave room for future rate hikes. UBS Bank expects the statement to possibly strengthen the narrative of energy price-driven inflation and weaken forward-looking guidance.

In addition, Danske Bank pointed out that if the Fed releases any dovish easing hints, it could lead to a retreat in US bond yields and a broad-based weakening of the US dollar.