Traders in derivative markets expect a quarter-percentage point cut on Wednesday, followed by a skip in January and 50 basis point of cuts next year.
Here are some out of consensus views.
Meghan Robson, head of U.S. credit strategy at BNP Paribas, said her firm sees a 25bp cut in December but no cuts at all in 2025. The Fed will have to make policy with the elevated risk of tariffs in mind, she said.
Steven Englander, head of North America macro strategy at Standard Chartered Bank, thinks the Fed will cut in January. Weakness in the December jobs report, to be released on Jan. 10, will be enough for another cut.