Goldman Sachs are expecting a hawkish Fed and an end to the interest rate cut cycle

Both GS markets and analysts expect the Federal Reserve to reduce its interest rate by 25 points to a range of 1.50% - 1.75% next week, as well as to take rhetoric suggesting that interest rates will no longer be reduced.

Goldman estimates that FOMC's next week's chance of 30.10 is 95%, slightly above CME's 93.5%.

Investment bank economists expect the central bank to remove the "we will act on the situation to keep growth" element of its statement ahead of the conference. Instead, Wall Street will expect to hear the rhetoric as "we will act as necessary to achieve our goals."

Another change in language may occur in the description of consumption as "significant" rather than "strong".

Any indication of whether the FOMC intends to halt the interest rate cut cycle will come from Jerome Powell's press conference instead of the statement made earlier.

Analysts will expect FED Kansas President Esther George and Boston FED Eric Rosengren to announce a rate cut. James Bullard, President of the Fed. Louis, who last opposed the cut because it wasn't big enough, is expected to support a 25-point decision this time around.

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