Institution: The Fed's forward guidance may have a mildly hawkish tone.

On October 28, Jin10 reported that analysts Matthias Scheiber and Rushabh Amin from Allspring Global Investments expect the Fed to cut the benchmark interest rate by 25 basis points this week, although its forward guidance may be worded inconsistently and could carry a mildly hawkish tone. They stated in a report: “We believe the market may be a bit too optimistic about a rate cut in December.” They also mentioned that they provided a 60%-70% probability, while the current market pricing is at 96%. Inflation expectations remain high, and this risk may persist, especially against the backdrop of ongoing economic uncertainty. However, they added that in the long term, if economic growth remains resilient, the Fed may tolerate an inflation rate above 2%.