Here's what every major Wall Street economist thinks the Federal Reserve will do today

Published Wed, Oct 30 20199:57 AM EDTUpdated Wed, Oct 30 20199:57 AM EDT

Most major Wall Street economists expect the Federal Reserve to cut its key interest rate by a quarter point at the conclusion of its two-day meeting on Wednesday, but they differ on what the central bank will signal about its future policy. If the Fed does cut, it will be the third time this year following rate cuts in September and July . Economists, strategists, and Fed watchers alike will also be parsing the Fed's statement and Chairman Jerome Powell's subsequent press conference for comments on what the Fed may do going forward. Here's what Wall Street economists expect from the Federal Reserve meeting: "We expect the FOMC to cut the fed funds rate target range by 25bp, to 1.50-1.75%, with assurances that it 'will act as appropriate to sustain the expansion.'" Morgan Stanley said. The phrase "will act as appropriate to sustain the expansion," is one that Chairman Powell has used before to signal that the Fed is prepared to cut interest rates deeper if the economy continues to slow. If there is a rate cut at the October meeting, don't expect any more this year according to Goldman Sachs. "We expect the FOMC to deliver a third and final 25bp rate cut," they said. But Morgan Stanley thinks they will leave the door open. "Chair Powell should avoid signaling a pause lest financial conditions tighten materially," the firm's economists wrote. "The statement and the press conference should maintain the ready-to-act-as-necessary message." Bank of America "We expect the Fed to cut another 25bp at the upcoming meeting, bringing rates to a range of 1.50-1.75%. This would mark the third 25bp cut in this cycle. A cut would not come as a surprise, since it is largely priced into the markets. Instead, the focus will be on the language of the statement and the post-meeting press conference. We think the FOMC will keep its options open when it comes to additional easing." Evercore ISI "We think the Fed is all but certain to cut interest rates for a third time this year at the October FOMC meeting. The action will all be in the signal the Committee sends about its appetite to do more. We do not expect a so-called 'dovish cut' that encourages investors to add to expectations of additional easing or a so-called 'hawkish cut' that smacks of three-and-done." Goldman Sachs "We expect the FOMC to deliver a third and final 25bp rate cut at the upcoming meeting. Strong signaling from Fed leadership indicates that the modest trade war de-escalation since September has not deterred them from completing a 75bp, 1990s-style 'mid-cycle adjustment.'" Morgan Stanley "We expect the FOMC to cut the fed funds rate target range by 25bp, to 1.50-1.75%, with assurances that it 'will act as appropriate to sustain the expansion.' .. .While we believe post-October is an appropriate time to take a breather, Chair Powell should avoid signaling a pause lest financial conditions tighten materially. The statement and the press conference should maintain the ready-to-act-as-necessary m