BNY Mellon: The market widely expects a Fed rate cut, with voting splits and the dot plot being key factors

According to ChainCatcher, citing Golden Ten Data, market pricing shows that the probability of the Federal Reserve cutting interest rates by 25 basis points this Wednesday is close to 90%. Analysts at Bank of New York Mellon stated that investors should pay attention to the guidance brought by voting divergences, and pointed out that there may be disagreements within the committee regarding the level of support for the expected rate cut.

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