Nordic Securities: The Federal Reserve is expected to cut interest rates by 25 basis points tonight, opening the door to a substantial rate cut

Odaily Odaily News: Sweden's Nordic Bank looks ahead to the Federal Reserve's interest rate decision, saying that the market is still unsure about the magnitude of the Fed's first rate cut. The bank expects the Fed to be inclined to cut interest rates by 25 basis points, but is expected to hint that this is only the first step in a series of rate cuts. The bank expects that Fed members will predict two rate cuts of 25 basis points each at the November and December meetings, and another 100 basis point cut next year, for a total of 175 basis points. The bank said: "If our forecast is correct, the Fed's performance in the coming year will be far from market expectations, which is likely to 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. (Jinshi)