A compilation of institutional views predicting a 50 basis point Fed rate cut

1. Mitsubishi UFJ: Expect the Fed to hawkishly cut rates by 50 basis points, signaling to the market that “they are preemptive rather than behind the curve.
2. Moody's Analytics: The Fed has accomplished its dual mission, and with a funds rate of around 5.5% too high, the Fed has plenty of room to normalize rates. 3.
3. BNP Paribas: If the Fed is concerned about the risk of a hard landing in the economy, then it could cut rates by 50 basis points, and it could also cut rates by 50 basis points in November.
4. “New Bond King” Gonzalez: the U.S. economy has fallen into recession, may face deflation in the future, the Federal Reserve is far behind the curve, and should act quickly. 5.
5. Bridgewater Fund founder Dalio: If you look at the worse, wider-reaching mortgage situation, the Fed could cut rates by 50 basis points.
6. Ariel Bezalel, co-manager of the Jupiter Strategic Bond Fund: The bond market is strongly urging the Fed to cut rates sharply because the inverse spread between the federal funds rate and the yield on the two-year Treasury note is the largest in 45 years.