(Reuters) -Wall Street brokerages, including Morgan Stanley and Wells Fargo, have reiterated their expectation of a quarter-point interest rate cut by the U.S. Federal Reserve in December, after key consumer price index (CPI) data for November rose the most in seven months.

The consumer price index rose 0.3% last month, the largest gain since April after advancing 0.2% for four straight months, the Labor Department’s Bureau of Labor Statistics said.

In the 12 months through November, the CPI climbed 2.7% after increasing 2.6% in October. The rise in the CPI was in line with economists’ expectations.The Fed’s next monetary policy meeting is due on Dec. 17-18.

Here are the forecasts from major brokerages after the CPI data:

Rate cut estimates (in bps)

Brokerages December 2024

J.P. Morgan 25

Wells Fargo 25

Macquarie 25

Morgan Stanley 25

Citigroup 25

RBC 25

TD 25

Securities

ING 25

Scotiabank 25

Barclays 25

BofA Global 25

Research

Here are the forecasts from major brokerages before the CPI data:

Rate cut estimates (in bps)

Brokerages Dec 2024 2025 Fed Funds Rate

BofA Global 25 50 3.75%-4.00% (end of

Research June)

Barclays 25 50 3.75%-4.00% (end of

2025)

Macquarie 25 25 4.00%-4.25%

Goldman Sachs 25 100 3.25%-3.50% (through

(through September 2025)

September

2025)

J.P.Morgan 25 75(throug 3.75% (through

h September 2025)

September

2025)

*UBS Global 25 125 3.00%-3.25% (through

Research end of 2025)

TD Securities 25 100 3.25%-3.50% (through

end of 2025)

Morgan Stanley 25 100 3.375% (Q4 2025)

(through

June

2025)

Jefferies 25 100 3.25%-3.50% (through

end of 2025)

Nomura – 50 4.125% (through end

of 2025)

*UBS Global Wealth 25 100 3.25%-3.50% (through

Management end of 2025)

Deutsche Bank 25 No Rate 4.375%

Cuts

Citigroup 25 – 3.00%-3.25% (H1

2025)

Societe Generale 25 – –

HSBC 25 100 3.25%-3.50%

Wells Fargo 25 25 4.00%-4.25%

Investment

Institute

* UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group

(Compiled by the Broker Research team in Bengaluru; Editing by Shinjini Ganguli, Devika Syamnath and Maju Samuel)

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