Bank of America, Goldman Sachs, and JPMorgan Chase preview the Federal Reserve meeting

On October 30th, Bank of America, Goldman Sachs, and JPMorgan Chase released their forward-looking views on Powell and the Federal Reserve meeting. Bank of America's view on Powell and the Fed meeting: Due to limited official data and the mismatch between labor market and consumer data, Powell is unlikely to provide further economic guidance after this meeting. The statement may indicate a "robust" rebound in economic activity. Possible objections: hawkish objections from Milan (suggesting a 50 basis point rate cut) or Goolsby/Schmid. Quantitative tightening will end immediately. Powell's press conference will likely focus on the discrepancy between consumer and labor market data, and market reaction will depend on his interpretation of the strong consumer performance. Expected future rate cuts: October, June, September, and December 2026. Goldman Sachs' comment on the Federal Open Market Committee: The market's focus may be on how close the Federal Open Market Committee (FOMC) is to its own policy, with quantitative tightening (QT) being crucial. This meeting is very likely to end quantitative tightening. Future rate cut plan: 25 basis point cuts each in October and December, followed by two more cuts in 2026, with a target interest rate range of 3% to 3.25%. JPMorgan Chase on the Federal Open Market Committee: The market widely expects a rate cut, and even hawkish Fed officials have not disputed market expectations. The statement is expected to remain largely unchanged—economic activity remains robust, but job growth is slowing and inflation remains high. Milan may oppose a 50 basis point rate cut; quantitative tightening will end immediately. Powell will define the accommodative policy as risk management and will not provide guidance on the policy direction in December. Future rate cut plan: 25 basis point cuts each in October, December, and January.