After the interest rate cutting cycle begins, how will the Federal Reserve proceed next? Wall Street is full of debate.

After the Federal Reserve started a rate cut cycle this week, the largest banks on Wall Street have differing opinions on the speed and magnitude of the rate cuts that the Fed will make next, financial markets will remain tense until the outlook is clear. On Wednesday, the Federal Reserve unexpectedly cut benchmark interest rates by 50 basis points. Several hours later, multiple economists adjusted their forecasts, with Goldman Sachs expecting the Fed to cut rates by 25 basis points at every meeting from November to June next year. JPMorgan, which correctly predicted the extent of this week's rate cut, still believes that the Fed will cut rates by another 50 basis points in November, but says this will depend on the condition of the labor market. In the market, traders expect rates to be cut by around 70 basis points by the end of this year and nearly 200 basis points by September next year. This is more aggressive than the 50 basis point cut by the end of the year that Fed officials predicted in their latest dot plot. Here are the viewpoints of some Wall Street economists: Bank of America Economists and strategists including Aditya Bhave, Mark Cabana, and Alex Cohen wrote that the Fed "will be forced to cut rates further," with another 75 basis points cut in the fourth quarter and a further 125 basis points cut next year. Barclays The lead U.S. economist Marc Giannoni wrote in a report that the Fed will continue to cut rates by 25 basis points in November and December, followed by three more 25 basis point cuts in 2025. But considering the Fed's unexpected 50 basis point cut on Wednesday (Barclays did not predict this extent), they now believe that the target range by the end of next year will be lowered to 3.50% to 3.75%. Citi Citi economists Veronica Clark and Andrew Hollenhorst maintained their forecast of another 75 basis point cut this year, with 50 basis points cut in November and 25 basis points cut in December. They wrote in a report, "the risk of a faster pace of rate cuts remains balanced." The bank expects multiple 25 basis point cuts in 2025, with the final rate reaching a range of 3% to 3.25%. Deutsche Bank Economists led by Matthew Luzzetti insist that the Fed will gradually cut rates by 25 basis points before the March 2025 meeting, then switch to quarterly rate cuts, eventually keeping the federal funds rate between 3.25% and 3.5% by the end of next year. They wrote that the signal sent by the Fed on Wednesday was, "this action is a policy 'reset,' rather than the beginning of a series of larger rate cuts." Goldman Sachs Economists including Jan Hatzius wrote in a report that the Fed will choose to cut rates by 25 basis points from November to June next year, bringing the final rate to 3.25% to 3.5%. The bank previously expected consecutive rate cuts at the last two meetings in 2024, followed by quarterly rate cuts in 2024. The question of whether the Fed will cut rates by another 50 basis points in November is a "pending" issue that will be decided by the next two employment reports. JPMorgan The bank's chief U.S. economist Michael Feroli correctly predicted this week's 50 basis point rate cut and continues to believe in another 50 basis point cut in November. However, he said that this will depend on further softening in the labor market. Morgan Stanley A team including economist Seth Carpenter and strategist Matthew Hornbach said that officials may choose to "continuously" cut rates by 25 basis points before the middle of 2025, including two cuts this year and four in the first half of next year. TD Securities Strategists including Oscar Munoz and Gennadiy Goldberg wrote on Thursday that the threshold for the Fed to further cut rates by 50 basis points will be higher from now on. They pointed out, "Looking ahead, the Fed's forward guidance does not seem as gentle as indicated by this week's rate decision." TD Securities expects two 25 basis point cuts this year, followed by 25 basis point cuts at each meeting in 2025. Wells Fargo Strategists at Wells Fargo, including Michael Schumacher and Angelo Manolatos, wrote that the "loose cycle of 2024 began with historically high market uncertainty." The bank expects that in the event of a hard landing, the Fed may cut rates by up to 350 basis points in the first year of its rate cut cycle, or 150 basis points in the case of a soft landing. Nonetheless, "the Fed has plenty of room to ease."