The Federal Open Market Committee (FOMC) meeting this week is expected to play a critical role in shaping the market’s performance for the rest of the year. Bank of America predicts a 25 basis point rate cut, but the real focus will be on the updated economic projections, particularly for 2025. Investors will be closely watching whether the updated “dot plot” indicates three rate cuts for next year, as expected by the bank, compared to the four cuts projected in September.
With the Federal Reserve signaling a more cautious approach, the outcome of this meeting could serve as the final hurdle for a potential Santa rally in the S&P 500.
Key Insights:

Expected Rate Cut: The FOMC is likely to announce a 25bps rate cut, in line with market expectations.
Focus on 2025 Projections: Bank of America’s prediction of three rate cuts next year contrasts with September’s expectation of four.
Market Implications: These updates could influence investor sentiment, determining whether the S&P 500 sees continued upward momentum or faces headwinds.

For more details on market trends and analysis, you can also explore the Economic Calendar or Market Most Active APIs for real-time insights.