Poll: Fed not expected to go along with calls for big rate cuts and unlikely to cut rates urgently

Most economists surveyed expect the Federal Reserve to cut interest rates by only 25 basis points in September, running counter to calls from some of Wall Street's largest banks for a significant rate cut. In the economists surveyed by foreign media, nearly four-fifths predicted that the Federal Reserve will cut interest rates by 25 basis points at the September meeting, and most of the remaining economists predicted a larger rate cut. The median forecast showed that the likelihood of an emergency rate adjustment before the September meeting was only 10 per cent. After last week's weaker-than-expected jobs report, some of Wall Street's major banks, such as JPMorgan Chase and Citigroup, are now forecasting a 50-basis-point rate hike by the Fed next month. Futures investors have determined that the Fed will cut rates by 100 basis points by the end of the year and 50 basis points beginning next month. However, the consensus among economists is that the Fed will adjust rates by 25 basis points each at its meetings in September, November and December and in the first quarter of next year.