FOMC Meeting: Experts See ‘Hawkish’ Cut as Crypto Traders Price In Third Cut This Year

Group 1 - Major U.S. banks, including JPMorgan and Bank of America, predict a 'hawkish' cut of 25 basis points (bps) at today's FOMC meeting, with expectations of fewer cuts in the future [2][3][6] - Fed Chair Jerome Powell is anticipated to signal a higher threshold for future rate cuts, indicating a potential slowdown in monetary easing [1][4][8] - Crypto traders are pricing in a 97% chance of a 25 bps rate cut today, following similar cuts in September and October [5][6] Group 2 - Goldman Sachs and Citi also expect a hawkish cut, with Goldman citing a softening labor market as a reason for the cut [4][6] - Economist Alex Krüger suggests a possible surprise announcement regarding T-Bill Reserve Management Purchases to enhance banking system liquidity, which would resemble quantitative easing [7] - Krüger notes that a priced-in hawkish cut could lead to increased market volatility [8]