Bank of America, Goldman Sachs, and JPMorgan Chase anticipate the Fed meeting

On October 30, Bank of America, Goldman Sachs, and JPMorgan Chase provided forward-looking insights on Powell and the Fed meeting. Bank of America’s view on Powell and the Fed meeting: Due to limited official data and a mismatch between the labor market and consumption data, Powell is unlikely to provide further economic guidance after this meeting. The statement may indicate a “robust” rebound in economic activity. Possible dissenting opinions: Milan (suggesting a 50 basis point rate cut) or the hawkish dissent of Goolsbee/Schmidt. Quantitative tightening will end immediately. Powell's press conference may focus on the discrepancies between consumer and labor market data, and market reactions will depend on his interpretation of the strong consumer performance. Expected future rate cut timings: October 2026, June, September, and December. Goldman Sachs' comments on the Fed Open Market Committee: The market's focus may be on the FOMC's approach to its policy nearing neutral levels, where quantitative tightening (QT) is crucial. This meeting is very likely to end quantitative tightening. Future rate cut plan: a 25 basis point cut in October and December, with two more cuts in 2026, targeting a rate range of 3% to 3.25%. JPMorgan Chase on the Fed Open Market Committee: The market generally expects a rate cut, and even hawkish Fed officials have not disputed market expectations. The content of 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; the quantitative tightening policy will end immediately. Powell will define the easing policy as risk management and will not provide guidance on the policy direction in December. Future rate cut plan: a 25 basis point cut in October, December, and January.