10:18 AM EDT, 09/18/2024 (MT Newswires) -- Bank of America ( BAC ) analysts said in a note Wednesday they believe the Federal Reserve is more likely to enact a half point reduction rather than a quarter point cut.

The analysts said that a 25 basis point cut would be considered a "hawkish" surprise, while noting that the Federal Reserve "appears more comfortable surprising in a dovish direction."

"The Fed generally likes hawkish signals to be well telegraphed so as not to surprisingly tighten financial conditions," the analysts said.

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