Swedish bank SEB forecasts Fed rate decision:

SEB, a Swedish bank, anticipates the Federal Reserve's interest rate decision, stating that the market remains uncertain about the magnitude of the Fed's first rate cut. The bank expects the Fed to favor a 25 basis point rate reduction, but also anticipates the Fed will hint at this being the first in a series of rate cuts.

SEB predicts that Fed members will forecast two rate cuts, of 25 basis points each, at their November and December meetings, followed by another 100 basis points of rate cuts throughout next year, totalling 175 basis points. The bank states, "If our forecasts are correct, the Fed's performance over the next year will deviate significantly from market expectations, which could lead to disappointing outcomes." However, the message from Fed Chair Powell will likely be that the Fed will act as needed to support a soft landing, leaving the door open for more frequent and larger rate cuts.