BofA now expects Fed to go for 75-bp cut in Q4 after bumper rate reduction

The Fed announced a larger-than-usual half-percentage-point reduction that Chair Jerome Powell said was meant to show policymakers' commitment to sustaining a low unemployment rate now that inflation has eased. The Wall Street brokerage said in a note on Wednesday it now expects the Fed to lower rates by 75 bps in the fourth quarter, compared with its earlier forecast of two 25-bp cuts in the Fed's November and December meetings.